Leveraged finance professionals are generally hopeful about the pipeline of new deals to feed investor demand as they consider market conditions in the fourth quarter of 2025 and early next year. Another trend market participants highlighted this fall is an increasing prevalence of “disqualified counsel” provisions appearing in broadly syndicated loan deal documents, which allow one party to prevent another party from choosing a specific law firm as its counsel. “In BSL deals, disqualified counsel language is a focus point for sponsors,” said Kris Ring, a partner in Goodwin’s Private Equity group. “This language has become more prevalent in newly syndicated deals because there are certain counsels who are known to be problematic and stir up lender-on-lender violence. That’s not productive from a sponsor point of view, so sponsors are taking a stance.”
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