Thoma Bravo has gone down the route of private credit to fund its acquisition of fintech Calypso Technology, and in the process, has come out the other end with a record-setting transaction.

The technology-focused private equity firm nabbed a $2.3 billion loan from asset manager and direct lender Owl Rock, according to three sources familiar with the financing. The financing, known as a unitranche loan, is the largest-ever in the US credit market.

Thoma Bravo inked the deal to acquire Calypso Technology from private investment firms Bridgepoint and Summit Partners in March for $3.75 billion.

Thoma Bravo’s decision to tap Owl Rock, meanwhile, is a further sign of how much private credit funds have grown. The sheer size of the facility also underscores that direct lenders are capable of writing larger checks for acquisitions and compete for deals that are typically funded in the high-yield bond and leveraged loan markets.

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Source: Business Insider

By Aaron Weinman