Thoma Bravo LLC’s purchase of Anaplan Inc. shows how private credit is on the short list of capital markets little affected by war, inflation and slowing economic growth.
The private equity firm’s $10.7 billion purchase of a San Francisco-headquartered software company is being financed by Blackstone Credit, Apollo Global Management, Golub Capital and Owl Rock Capital. While Wall Street banks reviewed the deal, Anaplan’s negative cash flow made it a poor candidate for leveraged-loan financing, and other debt markets are reluctant to take on risk when the Federal Reserve is raising rates.
Enter the giants of the expanding $1.12 trillion private credit business, where the pressure to deploy capital has created a hunger for deals. While junk-bond sales recently have been shelved and deals in leveraged loans and other markets have been delayed, a survey of 33 participants in private credit showed that 88% say their market is completely open, according to a report by advisory firm Baird.
Read more: BNN Bloomberg
