The Private Credit Bubble Bursts The recent refinancing of Catalent's $4. 1 billion syndicated loan marks a significant shift in the leveraged finance market.
For years, private credit has been the preferred choice for private equity borrowers seeking to fund their acquisitions, but its dominance is finally beginning to erode.
One major reason for this change is the growing pressure on direct lenders to redeem investors from their retail focused business development companies (BDCs).