As of the end of the first quarter, Wells Fargo shows $22 billion outstanding of middle market CLOs—with $16 billion of that in post-crisis deals. "We believe that middle-market lenders face similar headwinds (lower supply and more competition for assets) as broadly syndicated loan investors, but on a much smaller scale," analyst David Preston said in a report published Monday. That competition will only get worse as the result of the entrance of two new players: the Canada Pension (CPPIB), which is buying GE Capital's sponsor finance business (Antares) and a $3 billion loan book for $12 billion. Also, Ares Capital Corp. (which had partnered with GE Capital) has announced a new middle-market lending partnership with Varagon Capital Partners—with AIG as the anchor investor. "At this point, it appears that this equates to double the capacity and double the competition," Preston said.