Key Takeaways
- • BC Partners agreed to acquire Investcorp Credit Management BDC Inc., a struggling business development company, from Investcorp, according to people familiar with the matter cited by Bloomberg.
- • The deal would be executed through BC Partners' publicly traded vehicle, BCP Investment Corp., which the sources say would value Investcorp's BDC at a 10% discount to its net assets while valuing the BCP fund at 100% of net assets.
- • BC Partners manages more than $40 billion in assets, and the transaction is framed by Bloomberg as part of broader consolidation driven by turbulence in the $1.8 trillion private credit market.
Summary
Buyout firm BC Partners has agreed to purchase a struggling business development company (BDC) from Investcorp, according to Bloomberg, which reported the deal citing people familiar with the matter. The transaction underscores continued consolidation in the private credit sector as turbulence in the $1.8 trillion market pressures weaker vehicles.
BC Partners, which manages more than $40 billion in assets, will carry out the acquisition through its publicly traded fund, BCP Investment Corp. The sources said the deal would value Investcorp Credit Management BDC Inc. at a 10% discount to its net assets, while the BC Partners fund would be valued at 100% of its net assets. The sources asked not to be identified because the details are private, and no official terms were disclosed in the source material.
Traders Union also reported the transaction, framing it as a private credit consolidation move involving the BC Partners fund and Investcorp BDC. The reports are consistent on the core structure of the deal, though the valuation terms remain unconfirmed by the companies.
BC Partners, which manages more than $40 billion in assets, will carry out the acquisition through its publicly traded fund, BCP Investment Corp. The sources said the deal would value Investcorp Credit Management BDC Inc. at a 10% discount to its net assets, while the BC Partners fund would be valued at 100% of its net assets. The sources asked not to be identified because the details are private, and no official terms were disclosed in the source material.
Traders Union also reported the transaction, framing it as a private credit consolidation move involving the BC Partners fund and Investcorp BDC. The reports are consistent on the core structure of the deal, though the valuation terms remain unconfirmed by the companies.
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