Loan Defaults Pressure Private Credit as Watchdogs Probe $3 Trillion Market
Two big loan defaults are adding to pressure on private-credit funds, deepening stress in a roughly $3 trillion industry. Wall Street watchdogs are ramping up inquiries into how much risk has built up in the market, while investor unease has prompted some backers to pull back.
One reported case is Medallia, which can no longer pay about $3 billion of loans to firms including BX, KKR and APO, the Wall Street Journal reported. The newspaper said Thoma Bravo is likely to lose $5.1 billion on the investment, and that KKR and BX are restructuring a separate $1.4 billion loan tied to the 2021 buyout of dental-services company Affordable Care.
From the sources (3 posts)
@wsjWall Street’s watchdogs are ramping up their inquiries into how much risk has built up in the $3 trillion private-credit industry, just as investor angst has sparked some backers to head to the exits
@wsjmarketsTwo big loan defaults add to the pain in private-credit funds
@negligible_cap*THOMA BRAVO LIKELY TO LOSE $5.1B FROM MEDALLIA INVESTMENT: WSJ The WSJ is reporting that Medallia can no longer pay about $3 billion of their loans to firms including $BX, $KKR, $APO and other lenders. Thoma Bravo is likely taking a $5.