Reuters notes in a report that middle market buyout loans offer the best hope of boosting low borrowing levels by private equity firms as sponsors battle cash-rich corporate buyers and U.S. regulators’ leveraged lending guidance restricts the amount of debt that banks can offer.

Reuters said, citing “industry players”, after a weak second quarter for private equity borrowing, lenders are targeting middle market companies for deal flow. Lending in this segment could be a bright spot due to smaller deal sizes and alternative lenders’ growing ability to provide capital, Reuters notes.

According to Thomson Reuters data, Reuters said borrowing by private equity firms of $91.3 billion in Q2/15 was down 16.3% from $109.1 billion a year earlier.

Access the full Reuters report here.