According to a Thompson Reuters LPC report, lenders providing debt for private equity buyouts of U.S. middle market companies are seeing an upturn in dealflow after the Labor Day holiday in what has otherwise been a disappointing year in terms of volume.

According to LPC data, with just two weeks left in the third quarter, only $29 billion of U.S. middle market private equity deals have been completed year to date, which is about 40% below the volume recorded in the first three quarters of 2014, as new money opportunities have remained scarce.

LPC said lenders are confident, however, that dealflow will continue to pick up heading into the fourth quarter, based on growing deal pipelines and auction processes that have yet to mandate lead arrangers for debt financings.