Cloud 9fin Distressed Diaries — More private credit cockroaches crawling out?
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Nov 6, 2025 Join Alessia Argentieri, a senior distressed reporter at 9fin with a keen focus on European restructurings, and Gregory Rosenvinge, who analyzes private credit trends. They explore alarming trends in the private credit market, triggered by high-profile bankruptcies like First Brands. Alessia discusses the shift of private credit funds into ownership roles, while Gregory highlights new liquidity tools emerging in this space. They also delve into rising distress factors and the implications of recent regulatory scrutiny, revealing the intricate landscape of private credit.
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Private Credit Has Ballooned Into Riskier Territory
- Private credit has ballooned, driven by banks retreating and abundant dry powder pushing lenders further out on the risk curve.
- That growth increases exposure to complex, higher-risk deals as funds race to deploy capital.
Lenders Are Becoming Active Owners
- Scale and competition are driving private credit funds to take on more complex, fringe-market deals and distressed situations.
- Lenders now often replace sponsors and steer turnarounds, moving from passive to active roles.
Direct Lenders Took Control Of Multiple Firms
- Pemberton, Afin and Blue Owl agreed to take over NetSeed in a large debt-for-equity swap and injected new liquidity to keep it running.
- Private lenders also seized control of Bonhams and Dainese, replacing private equity sponsors in multiple European deals.