Deutsche Bank, the second largest lender of buyout loans last year, is taking a cautious approach to underwriting leveraged finance on private equity deals until at least the end of this year, according to several sources at buyout firms.

The bank has only offered to provide these financial sponsors with advisory and arranging services rather than underwriting debt to support buyouts, several buyout firms said. This meant the bank would help a company arrange and syndicate debt from third parties rather than use its balance sheet.