Private credit firms want more than corporate lending. The largest are laying the groundwork to finance everything from auto loans and residential mortgages to chip manufacturing and data centers in an effort to swell the size of the market by the trillions.
At a finance conference in London this summer, four senior investment bankers set about persuading the room that the $1.7-trillion private credit market isn’t a threat to Wall Street. Barely three months later, two of them have jumped ship to seek their fortunes in the upstart asset class.
JPMorgan Chase & Co. is on the hunt to buy a private credit firm to augment its $3.6 trillion asset management arm, as the biggest US bank makes more inroads into Wall Street’s buzziest sector.
On the surface, it was your run-of-the-mill private credit deal. A bunch of heavy hitters in the industry — Oak Hill Advisors, Antares Capital and Golub Capital — were providing half-a-billion dollars to fund the buyout of an engineering firm.
They’re the gilded class of high finance, whose shrewd bets and jumbo-sized paydays are the envy of Wall Street.
Elon Musk, in his first address to Twitter Inc. employees since purchasing the company for $44 billion, said that bankruptcy was a possibility if it doesn’t start generating more cash, according to people familiar with the matter.
The U.S. investment-grade loan market is set to return to normality in 2022 after loans delayed early in the pandemic were shifted into this year, making it among the busiest on record, according to some of the market’s lead deal arrangers.
A corner of the debt capital markets known for still sending official notifications via email and even the occasional fax is poised for a modern update.
As President-elect Joe Biden looks to pull the economy out of the wreckage caused by the pandemic and onto a sustained path of recovery, his team faces one increasingly big problem: a mountain of corporate debt.
The biggest private equity firms in the U.S. are unleashing a flurry of new leveraged buyouts and debt-funded dividends, seeking to make up for lost time after staying on the sidelines for much of 2020.