Cloud 9fin Private credit’s Deliberation Days
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Jun 16, 2025 Elijah Jackson, a private credit data analyst at 9fin and author of the insightful 'Good Deal Hunting' report, dives into the whirlwind of recent market changes. He discusses how private credit firms adjusted to geopolitical tensions and tariff risks while seizing new opportunities. The conversation highlights significant deals like the $4 billion Clarius refinancing, trends in add-on financings, and the evolving competition between traditional bank loans and private credit. Jackson also emphasizes the growing importance of lender relationships in navigating current uncertainties.
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Private Credit Thrives Amid Tariff Fears
- Geopolitical uncertainty, especially tariffs, made syndicated markets shaky while private credit benefited.
- Private credit lenders executed deals and bent terms, valuing certainty amid volatility.
Private Credit Gains Large Cap Share
- Private credit's share of large cap lending jumped from 28% to 53% in Q1 2025.
- This shift occurred as syndicated bank loan (BSL) activity hit a lows not seen since August 2024.
LBOs Fewer But Much Larger
- LBO activity dropped in volume but increased significantly in deal size in Q1.
- Average private credit-backed deal size rebounded to $492 million from $295 million in Q4.