Evolution of Lender Protections in Credit Markets (9fin)

Credit markets have evolved significantly over the past 15 years, with changes seen in private credit and BSL markets. The traditional standardized set of minority and majority rights for lenders has shifted due to disruptive transactions like the J.Crew case and increased sponsor involvement in private credit deals. This evolution has led to larger checks being written in the private credit market and a diverse range of funds with varying strategies in the BSL market. Consequently, stakeholders in these markets now have different incentive structures and goals, resulting in high profile legal battles over lender protections and shaping the way new credit documents are constructed.