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...These debts include mortgages and loans for cars, rental equipment and yachts....
...Many large private equity firms use whitelists....
...They’re also backing this up with a relatively niche argument: The number of private-credit loans being refinanced in BSL markets vs BSL loans being refinanced in private credit markets: At first glance...
...(Wall Street Journal) — When did it become normal for most Americans to rely on loans for every major expense — cars, houses, college, etc?...
...Private equity-owned German real estate lender Aareal Bank warned there was “more to come” after one in four of its US office loans went into default last year....
...Leverage — funds borrowing more money to make loans — adds risk, too....
...For example, if a private credit fund owns a $150mm loan, funded by $100mm of investor capital and $50mm of external leverage, this would be counted as $100mm of assets, assuming the loan is valued at par...
...senior loans....
...Private credit has less than 5 per cent of these types of loans, mostly packaged for insurers....
...Annual growth in the bloc’s private sector lending, excluding securitisations, has slowed from above 7 per cent in mid-2022 to only 0.4 per cent last month....
...Traditional private equity firms in the past five years have however raised mega private credit funds that can go head-to-head with the bank-originated syndicated loans extended to companies of in effect...
...of euros in interest-free, unsecured loans to help them buy two private jets....
...As the market grows, investors are more actively trading private credit loans that are halfway to maturity (or longer)....
...At worst, it’s shows a central risk of private credit markets, and private markets in general: Too much creativity/optimism on loan valuations can leave investors holding junkier debt than they thought....
...Invesco bought up a majority stake across two Robertshaw loan tranches....
...loan....
...Roughly $10bn of so-called private credit loans have been refinanced in public markets, as borrowers pay down burdensome loans in favour of a cheaper alternative, according to data from Bank of America....
...Real estate markets also face unique challenges: $3.6 trillion of commercial real estate (CRE) loans are maturing in the U.S. and Europe through 2025, many of which may not qualify for extensions....
...A decade of easy money though has skewed negotiating dynamics more in favour of borrowers and their private equity backers....
...Equinox, the popular luxury gym chain, has raised $1.8bn from a group of private capital investors to refinance more than $1bn in loans and give it financial breathing room....
...So you’re now seeing more and more competition between banks and private credit for the business of lending to companies. And that’s leading to falling prices on loans....
...The company eventually put a quarter of its customer premiums into various private asset classes including middle market corporate loans and vehicles that bought single-family homes....
...Rover Group, in what would be one of the cheapest private credit loans on record… In response [to banks offering cheaper loans] private credit firms including Blackstone, KKR & Co., and HPS, among others...
...Private equity group Carlyle will take control of Southend Airport after sealing a deal to resolve a row over a loan made during the pandemic....
...EG lent Mohsin and Zuber Issa’s personal private jet companies $7mn in 2022, corporate filings show, on top of the €39mn in unsecured loans it gave them to buy the planes in 2018....
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