Private credit is all the rage these days, grabbing headlines for its rapid growth as an asset class in what industry leaders have called a “golden moment” for the space. Commentators have rightly focused on the myriad advantages of direct lending solutions for borrowers under credit facilities, but the growing prominence of privately placed financings has also had a less appreciated benefit; namely, improved deal certainty from a debt financing perspective in LBO transactions.

In this article published by Bloomberg Law, authors Benton Lewis, Christopher Machera and Samantha Patel (a) explain the rising popularity of private credit products, (b) outline the differences between direct lending, on the one hand, and the broadly syndicated financing market, on the other hand, and (c) detail the ways in which the emergence of direct lending has simplified the dynamic between buyers and sellers in negotiating the financing-related terms of acquisition contracts.

Read “The Rise of Private Credit & Its Impact on Acquisition Dynamics” here.