The giants of private credit – the only game in town lately for big-ticket leveraged buyouts – are dialing back on risk, in a turning point that threatens to reduce crucial financing for mega deals.
Blackstone, Apollo Global Management, Ares Management, KKR, Antares Capital and the asset management arm of Goldman Sachs Group Inc. are cutting the amount of debt they’re providing per deal as recession risk rises, according to people with knowledge of the matter who aren’t authorized to speak publicly.
In the first half of the year these private credit firms were willing to band together to provide as much as $5bn, or even $7bn, of debt for an acquisition. That has dwindled to around $2bn for the unitranche loan portion, said one of the people, though such a figure remains large by historic standards.
Read more: BNN Bloomberg
