Articles by Sami Vukelj
WhiteHorse Finance BDC pursues $680M continuation vehicle deal Original
Private credit manager WhiteHorse Capital is pursuing a credit secondaries transaction involving its publicly traded BDC that is set to move $680 million of private credit assets into a continuation vehicle, according to market sources. The transaction would transfer all assets from the BDC, WhiteHorse Finance (Nasdaq: WHF), into a closed-end continuation vehicle backed by private credit secondaries investors, sources said.
Private Credit: The Software Space Is Becoming a Tougher Sell for Lenders
For years, private credit lenders feasted on software loans. Now, that feast has turned to finger food. Market sources say private credit software deals done this year have typically been refinancings and extensions completed by incumbent lenders. They say it’s tough to attract new lenders to legacy software credits. There are exceptions.
Private credit gets finicky, turning software-sector feast into pecking
For years, private credit lenders feasted on software loans. Now, sated on the sector, that feast has turned to finger food. Market sources say that the private credit software deals getting done this year have typically been refinancings and extensions completed by incumbent lenders. It’s tough to attract new lenders to legacy software credits, sources say. There are exceptions, however.
Goldman Sachs private credit BDC redemptions come in below 5% again in Q3
Redemptions in Goldman Sachs’ non-traded BDC declined again in Q3, marking a third consecutive quarter in which the fund avoided breaching the 5% withdrawal limit that has been exceeded at most peer funds in the industry this year. The fund, Goldman Sachs Private Credit Corp., received repurchase requests for 2% of shares outstanding in Q3, according to a shareholder letter. Redemption requests came in at 4.99% in Q1, then fell to 3.24% in Q2.
Goldman Sachs private credit BDC redemptions come in below 5% again in Q3
Redemptions in Goldman Sachs' non-traded BDC declined again in Q3, marking a third consecutive quarter in which the fund avoided breaching the 5% withdrawal limit that has been exceeded at most peer funds in the industry this year. The fund, Goldman Sachs Private Credit Corp., received repurchase requests for 2% of shares outstanding in Q3, according to a shareholder letter. Redemption requests came in at 4.99% in Q1, then fell to 3.24% in Q2.
Software business Calero obtains private credit loan to support refinancing Original
Software company Calero received a $350 million private credit loan to refinance its existing debt, according to market sources. Comvest is leading the refinancing, sources said. Pricing on the loan is S+650. The senior facility consists of a $325 million term loan and a $25 million revolver. The company is backed by Oak Hill Capital.
Oaktree BDC repurchase requests fall to 3.8% in Q3
Repurchase requests at Oaktree’s non-traded BDC came in below 5% for the second consecutive quarter, marking a continued decline in withdrawals for the fund. Oaktree Strategic Credit Fund (OSC) received withdrawal requests for about 3.8% of its shares outstanding in Q3, according to a Sept. 15 shareholder letter. Redemptions are down from 4.5% in the prior quarter.
Oaktree BDC repurchase requests fall to 3.8% in Q3
Repurchase requests at Oaktree's non-traded BDC came in below 5% for the second consecutive quarter, marking a continued decline in withdrawals for the fund. Oaktree Strategic Credit Fund (OSC) received withdrawal requests for about 3.8% of its shares outstanding in Q3, according to a Sept. 15 shareholder letter. Redemptions are down from 4.5% in the prior quarter.
Dislocation, lower recoveries ahead as private software loans mature – Oaktree
As billions in software loans mature in 2027 and 2028, the private credit industry likely faces a 12-18 month period of dislocation, and lower recoveries than lenders have experienced in the past, according to Milwood Hobbs Jr., Deputy Chief Investment Officer of Oaktree's Strategic Credit platform.
Dislocation, lower recoveries ahead as private software loans mature – Oaktree
In the near term, Hobbs said that the main challenge for the industry is a lack of M&A, which has been stifled by macroeconomic factors involving tariffs and geopolitics. Currently, the broadly syndicated market is generally more open than the private credit market, driven by CLO appetite for paper, he said.
Data center construction support bolsters private credit borrowers – PitchBook Original
As AI infrastructure is set to mobilize hundreds of billions of dollars in private credit capital in the coming years, the boom in data center construction is already propelling massive increases in PE activity in adjacent specialty construction sectors, according to a new report from PitchBook.
Data center construction support bolsters private credit borrowers – PitchBook
As AI infrastructure is set to mobilize hundreds of billions of dollars in private credit capital in the coming years, the boom in data center construction is already propelling massive increases in PE activity in adjacent specialty construction sectors, according to a new report from PitchBook.
Direct lending activity improves from Q2 lows, but still lags Q1 – PC Monitor Original
Sponsor-backed direct lending volume and deal count ticked up in the three months ended Aug. 31, recovering from the lows seen in Q2 but remaining below Q1 levels, according to new LCD data. Direct lenders provided an estimated $28 billion across 124 sponsor-backed deals over the past three months, up from $23 billion across 101 deals in Q2, though still short of Q1’s $45 billion across 133 deals, according to the latest US LCD Private Credit Monitor.
Cliffwater private credit fund redemption requests total 16% of shares in Q3 Original
Investors in Cliffwater’s direct lending interval fund sought to redeem 16% of shares outstanding in Q3, according to an investor letter seen by PitchBook LCD. Withdrawal requests in Cliffwater Corporate Lending Fund (CCLFX) fell slightly from 17% in the prior quarter. The fund will repurchase 5% of shares outstanding on a pro rata basis, consistent with the prior quarter and with the redemption limits most BDCs have been sticking to in recent quarters.
Affordable Care turned over to private credit lenders, reduces debt by $1B
Dental support organization Affordable Care has completed its restructuring, reducing the company’s total debt by $1 billion and turning ownership over to its private credit lenders. The recapitalization transaction lowers the company’s debt by about 65%, provides $75 million of new capital and extends maturities to 2031, according to an Aug. 13 company statement. Affordable Care’s restructuring began earlier this year, following several quarters of markdowns by private credit lenders.
Affordable Care turned over to private credit lenders, reduces debt by $1B
Dental support organization Affordable Care has completed its restructuring, reducing the company's total debt by $1 billion and turning ownership over to its private credit lenders. The recapitalization transaction lowers the company's debt by about 65%, provides $75 million of new capital and extends maturities to 2031, according to an Aug. 13 company statement. Affordable Care's restructuring began earlier this year, following several quarters of markdowns by private credit lenders.
NVIDIA forms $500B partnership with six asset managers to fund AI infrastructure
NVIDIA (Nasdaq: NVDA) has partnered with six asset managers to establish AI compute infrastructure financing platforms that will aim to mobilize more than $500 billion of third-party capital. Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR all formed strategic partnerships with NVIDIA to establish independent financing platforms, according to an Aug. 10 company statement.
KKR: Pessimism about private credit and AI weighs on the industry Original
Asset manager KKR said that anxiety over private credit was one strand of pessimism weighing on the industry, which was likely facing increased bifurcation among GPs and in investor performance. CEO Scott Nuttall said that he does not recall a period when “the external perception is so disconnected from the operating fundamentals and how it feels inside the firm,” noting that it expects a record third-party credit fundraising year.
MedImpact in talks for $2.2B private credit loan to support acquisition Original
Pharmacy benefits manager MedImpact is in talks to receive a $2.2 billion second-lien private credit loan to support the company’s proposed acquisition of Medical Card System, a healthcare services organization. Ares is in talks to lead the debt financing for the non-sponsored M&A deal, sources said. Price talk on the second-lien facility is S+800. Medical Card System was acquired by Kinderhook-backed MHH Healthcare in 2021.
Private credit default rate falls to 2.5% in Q2, software stable – Proskauer Original
The private credit default rate fell to 2.51% in Q2, from 2.73% in Q1, according to Proskauer’s Private Credit Default Index. The default rate for larger borrowers in the dataset (those with EBITDA equal to or greater than $50 million) decreased to 2.4% in Q2 from 3% in Q1, while defaults also fell among smaller borrowers (less than $25 million) to 1.9%, from 2.3%. The default rate for borrowers in the middle size category rose to 3.4% in Q2 from 3.1% in Q1.
Private credit secondaries volume already surpasses FY 2025 – Evercore Original
The rapid growth of the private credit secondaries space continued this year despite broader primary market volatility, according to new data from Evercore. Deal volume for credit secondaries transactions in H1 2026 reached $20 billion, already surpassing the FY 2025 total, according to the Evercore H1 2026 Secondary Market Review released on July 21. GP-led transactions, which are generally continuation vehicles, accounted for $17 billion of the market growth so far this year.
Private credit continuation vehicle pricing suggests secondaries bifurcation Original
Pricing details have emerged on several private credit continuation vehicles that closed in the past year, showing that at least five of these secondaries transactions have priced at a nominal premium to par, according to market sources.
Invited Clubs receives $1.7B private credit loan to support acquisition by KSL
Private club owner and operator Invited Clubs obtained a private credit facility for over $1.7 billion to support KSL Capital Partners’ acquisition of the company. Ares Credit funds led the financing and served as administrative agent on the facility, according to a document seen by PitchBook LCD. KSL acquired the company from Apollo, which bought the platform in 2017. The company was formerly known as ClubCorp.
Invited Clubs receives $1.7B private credit loan to support acquisition by KSL
Private club owner and operator Invited Clubs obtained a private credit facility for over $1.7 billion to support KSL Capital Partners' acquisition of the company. Ares Credit funds led the financing and served as administrative agent on the facility, according to a document seen by PitchBook LCD. KSL acquired the company from Apollo, which bought the platform in 2017. The company was formerly known as ClubCorp.
Apollo private credit BDC holds 5% redemption limit after 17% Q2 requests Original
Apollo’s flagship non-traded business development company is sticking to its 5% quarterly redemption limit after receiving repurchase requests for 16.8% of outstanding shares in Q2. The fund, Apollo Debt Solutions BDC, said that redemption trends were underpinned by a notable regional split, as US onshore repurchase requests moderated to 4.3% in Q2, while redemptions from offshore investors increased to 12.5%, according to an 8-K filing.
Morgan Stanley BDC holds at 5% redemption cap after requests rise to 11.6% Original
North Haven Private Income Fund, a non-traded business development company affiliated with Morgan Stanley, has received repurchase requests representing about 11.6% of shares outstanding in Q2. The fund will stick to its 5% quarterly redemption cap, fulfilling about 43% of tender requests on a pro rata basis, according to a June 23 investor letter.
Life insurers lend to private credit funds they back, adding risk – Clearwater Original
Life insurers' deep ties to the private credit industry have drawn regulators' attention in recent years, but a new report from Clearwater Analytics identifies what it describes as a subtle concentration risk that has been underappreciated in life insurance portfolios, as the firm estimates that 10-20% of insurers with LP exposures to private credit funds are also exposed to the underlying fund's debt.
Fewer LPs plan to increase allocations to private credit over next year – Coller Capital Original
The proportion of private credit LPs planning to increase their allocations to private credit over the next 12 months dropped to 29%, from 42% six months ago, according to a survey of institutional investors by Coller Capital. The data from Coller Capital’s Global Private Capital Barometer, published June 22, suggests that the market upheaval that private credit markets have experienced this year could lead to fewer new commitments to the asset class.
Medallia taken over by private credit lender group led by Blackstone
A group of private credit lenders led by Blackstone, Apollo and FS KKR Capital Corp. is taking the keys to software company Medallia from previous owner Thoma Bravo in a recapitalization of the business. The transaction will “significantly” reduce Medallia’s outstanding debt, and the new owners are investing $150 million of new capital in the company, according to a June 17 company statement.
Medallia taken over by private credit lender group led by Blackstone
A group of private credit lenders led by Blackstone, Apollo and FS KKR Capital Corp. is taking the keys to software company Medallia from previous owner Thoma Bravo in a recapitalization of the business. The transaction will "significantly" reduce Medallia's outstanding debt, and the new owners are investing $150 million of new capital in the company, according to a June 17 company statement.
Papa John’s take-private bid by Irth Capital nets $725M preferred equity, $1B debt
Details emerged on the financing supporting Irth Capital’s take-private bid for pizza chain Papa John’s International, including $725 million of preferred equity and $1 billion in bridge financing, according to market sources. Brookfield Asset Management provided committed financing for the deal, including the preferred equity, and is looking to syndicate some of the preferred equity to other private credit investors, sources said.
Papa John's take-private bid by Irth Capital nets $725M preferred equity, $1B debt
Details emerged on the financing supporting Irth Capital's take-private bid for pizza chain Papa John's International, including $725 million of preferred equity and $1 billion in bridge financing, according to market sources. Brookfield Asset Management provided committed financing for the deal, including the preferred equity, and is looking to syndicate some of the preferred equity to other private credit investors, sources said.
Amid market shift, US direct lending activity nears three-year low – PC Monitor Original
Private credit activity continued to slow, as direct lenders provided an estimated $45.2 billion of new loans in the three months through May, the lowest level since Q2 2023, according to LCD data. Direct lending volume in the three months through May was down 40% from Q1 levels, and direct lending deal count fell to 184 transactions in the period, the lowest since Q3 2023 and down 16% from Q1 2026, according to the latest US LCD Private Credit Monitor.
Blackstone’s BCRED holds 5% repurchase cap after Q2 withdrawal requests of 10% Original
Blackstone’s largest non-traded business development company received repurchase requests for approximately 10% of shares outstanding in Q2, continuing the streak of elevated redemption requests in private credit vehicles this year. Blackstone Private Credit Fund (BCRED), the market’s largest BDC by AUM, will fulfill requests for 5% of shares outstanding this quarter, in line with the fund’s design, according to a June 4 investor letter.
Private credit rating downgrade volume up 50% over past year — Morningstar DBRS Original
The pace of private credit middle market defaults increased sharply in May, according to a report by Morningstar DBRS. The volume of downgrades of private credit borrowers included in the agency’s dataset has risen by 50% in the past year, and 42% of 2026 downgrades entailed borrowers flowing out of single B into the CCC and lower category, according to the May 28 report.
Pricing details emerge on $36B private credit deal for Anthropic Original
Pricing details have emerged on the $36 billion of investment-grade structured notes being shopped around by Apollo and Blackstone to private credit investors as part of a deal to purchase and then lease chips to AI giant Anthropic, according to market sources. The financing will include roughly $6 billion in ‘super-senior’ A1 notes, $25 billion in first-lien senior A2 notes, and $4.5 billion in second-lien B notes. Price talk on the A1 notes is T+100, sources said.
Volatility, lower venture valuations drive record Q1 originations - Hercules Capital Original
Valuation uncertainty in Q1 drove more growth-stage companies to seek private credit financing, as borrowers sought to avoid raising equity capital at less attractive or more uncertain valuations, according to Hercules Capital. The platform benefited from the market volatility in Q1, said Hercules CIO and CEO Scott Bluestein. Bluestein expects the backdrop to drive elevated originations all year.
Private credit liquidity value to increase amid higher defaults - Sycamore Tree
The normalization of credit markets following years of lower defaults will create greater dispersion in manager and asset performance, increasing the value of liquidity for LPs in private credit funds, according to Sycamore Tree Capital Partners.
Software borrower Sophos eyes $2.6B syndicated loan amendment after testing private credit Original
Cybersecurity software company Sophos is considering amending and extending $2.6 billion of the company’s BSL debt that is maturing within the next year after initially testing private credit markets, according to market sources. The company pitched private credit lenders on a potential refinancing of the company’s debt earlier this year. The financing was marketed to private credit lenders over a month ago on EBITDA of about $500 million and pricing of S+575, sources said.
Direct lending volume sinks to one-year low amid Q1 market upheaval Original
The market disruptions that roiled markets in the second half of Q1 dented both deal count and volume in direct lending markets, and volume for the three months ended April 30 fell to a one-year low, according to LCD data. The latest US Private Credit Monitor shows LBO financing in particular hit its lowest levels for both deal count and volume since Q3 2023, as macroeconomic uncertainty and higher-for-longer rates kept sponsors on the sidelines.
Private credit may curb supply shocks, boost stability, according to academic study Original
Direct lending is countercyclical to issuance in public corporate credit markets, suggesting that the private credit market could dampen the transmission of credit supply shocks to the real economy, rather than amplify them, according to research from the Tuck School of Business at Dartmouth and the Frankfurt School of Finance & Management.
Price dispersion returning to private credit as spreads widen – New Mountain
Direct lending deal prices have begun to differentiate between asset quality with more precision, particularly in the software sector, according to New Mountain Finance Corporation. Spread dispersion increased in Q1 amid the backdrop of heightened volatility, particularly compared to last year’s highly competitive environment, when “we saw really no dispersion,” said COO Laura Holson on the company’s Q1 earnings call.
Price dispersion returning to private credit as spreads widen - New Mountain
Direct lending deal prices have begun to differentiate between asset quality with more precision, particularly in the software sector, according to New Mountain Finance Corporation. Spread dispersion increased in Q1 amid the backdrop of heightened volatility, particularly compared to last year’s highly competitive environment, when “we saw really no dispersion,” said COO Laura Holson on the company’s Q1 earnings call.
Blue Owl: Private credit BDC redemptions driven by concentrated minority Original
Blue Owl said that private credit redemption requests have been driven by headlines rather than fundamentals, and these outflows have been led by a concentrated minority of investors in these funds, according to the company’s Q1 earnings call today.
Private credit BDC redemption requests likely to peak in Q2 2026 – BofA
Redemption requests at non-traded BDCs are likely to peak in Q2 of this year after reaching historic levels in the first quarter, according to a report by Bank of America.
Private credit BDC redemption requests likely to peak in Q2 2026 - BofA
Redemption requests at non-traded BDCs are likely to peak in Q2 of this year after reaching historic levels in the first quarter, according to a report by Bank of America.
Blackstone Private Credit Fund non-accruals rise in Q1, driven by software and dental markdowns Original
Non-accruals in Blackstone’s $80.5 billion evergreen private credit vehicle, Blackstone Private Credit Fund (BCRED), ticked up in the first quarter as two credits drove an increase in the fund’s underperforming loans. Non-accruals at cost rose to 2.4% as of March 31, from 0.6% in the prior quarter, according to a Form 8-K filing for the non-traded BDC. Non-accruals at fair value rose to 1.4% from 0.4% over the same period.
Private credit lenders likely taking keys on Medallia amid ongoing restructuring Original
Software company Medallia is likely going to be taken over by its private credit lenders after months of markdowns in private credit funds and suggestions that restructuring was likely, according to market sources. Private equity sponsor Thoma Bravo, which bought the company for $6.4 billion in 2021, is set to lose over $5 billion in equity it has invested in the company with co-investors, though restructuring negotiations are ongoing, sources said. Reuters first reported on the restructuring.
Affordable Care being restructured after private credit markdowns Original
Dental service organization Affordable Care is restructuring its debt after being marked down by private credit lenders in recent months, according to market sources. The company was bought by Harvest Partners for about $2.7 billion in 2021, supported by about $1.4 billion in private credit financing. KKR agented that loan, but Blackstone holds the largest portion of the firm’s debt, sources said. Bloomberg first reported on the restructuring.
Private credit competition eases as redemptions sideline some funds - Corbin Capital Partners
The liquidity pressures facing non-traded BDCs are effectively sidelining large chunks of capital in private credit, creating a less competitive deal environment after a relatively crowded few years in the space, according to John Cocke, deputy CIO for credit at Corbin Capital Partners.
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