Key Takeaways
- • Private credit managers facing pressure are looking to sell battered business development companies (BDCs), and rival firms are eyeing the potentially cheap deals, according to Bloomberg.
- • Ares Management Corp., Barings LLC, BC Partners and Churchill Asset Management have reviewed troubled funds in recent months, according to people familiar with the matter.
- • Talks are preliminary and may not result in any transactions, the people said, asking not to be identified.
- • The activity comes during one of the most turbulent periods for the $1.8 trillion private credit market.
Summary
Private credit managers that are increasingly looking to offload struggling funds are drawing interest from rivals seeking to acquire them at discounted prices, Bloomberg reported. The development points to a possible shortcut to growth for firms in the sector, as buying an existing BDC can offer scale without the time required to raise new capital.
According to people familiar with the matter, Ares Management Corp., Barings LLC, BC Partners and Churchill Asset Management have evaluated troubled funds in recent months. Apollo was also cited among firms eyeing troubled BDCs in the headline coverage of the trend.
The sources stressed that the discussions remain preliminary and may not lead to any transactions. They asked not to be identified because the talks are private.
The reported interest comes as the $1.8 trillion private credit market faces one of its most turbulent periods, with pressure on battered funds creating the conditions for potential consolidation among managers.
According to people familiar with the matter, Ares Management Corp., Barings LLC, BC Partners and Churchill Asset Management have evaluated troubled funds in recent months. Apollo was also cited among firms eyeing troubled BDCs in the headline coverage of the trend.
The sources stressed that the discussions remain preliminary and may not lead to any transactions. They asked not to be identified because the talks are private.
The reported interest comes as the $1.8 trillion private credit market faces one of its most turbulent periods, with pressure on battered funds creating the conditions for potential consolidation among managers.
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