Tag

Private Credit

All articles tagged with #private credit

business9 days ago•3 min saved

Castlelake advances £5.5bn cash bid to take EasyJet private

US private credit group Castlelake and EasyJet have agreed in principle to a £6.90-a-share cash offer, valuing the airline at about £5.5bn on a fully diluted basis and extending the bid deadline to August 3; the deal would take EasyJet private if a firm offer emerges, following several prior approaches that EasyJet deemed undervaluing the company. The board said it would be minded to recommend the proposal, and the shares rose after the announcement as discussions around due diligence and ownership structure continued ahead of any possible higher bid based on additional information.

via Financial Times|

#airlines #business #castlelake

business1 month ago•11 min saved

Blackstone Clamps Withdrawals as Private Credit Funds Face Outflows

Blackstone capped redemptions at its $79 billion BCRED private credit fund in Q2 after redemption requests approached 10% of shares (versus about 7.9% prior quarter), setting a 5% withdrawal limit to replace immediate liquidity with longer-term returns. The move aims to curb forced asset sales amid growing investor retreat from private assets, with analysts noting demand was in line with expectations and Blackstone’s stock rose about 8% on the news. The report also notes slower overall private-credit inflows and ongoing redemption pressure across peer funds like Partners Group.

via HuffPost|

#asset-management #bcred #blackstone

business1 month ago•0 min saved

Blackstone caps withdrawals from flagship private credit fund amid redemptions

Blackstone has capped withdrawals from its flagship Blackstone Private Credit (BCRED) fund at 5% of shares after redemption requests hit 10% in Q2 (about $4.5 billion) for the $79 billion non-traded BDC; Blackstone shares were up about 1.6% in premarket trading.

via CNBC|

#bcred #blackstone #business

business1 month ago•3 min saved

Cliffwater curbs Q2 redemptions, rattling private credit names

Private credit stocks declined after reports that Cliffwater limited redemptions at its private credit fund for the second quarter, signaling stress in the sector and lifting doubts about industry health; leading names such as KKR, Apollo, ARES and Blackstone traded lower in premarket activity.

via Seeking Alpha|

#business #cliffwater #kkr

business1 month ago•4 min saved

Collapse of UK bridge lender exposes fault lines in private-credit networks

The insolvency of Market Financial Solutions, a UK bridge lender, has sent shocks through banks and asset managers on both sides of the Atlantic as major lenders report sizable losses and exposures (Barclays, HSBC, Santander, Jefferies, Wells Fargo, Elliott, Apollo-backed Atlas SP, Avenue Capital, Castlelake). Allegations of fraud, including double-pledging and a roughly £1.3 billion collateral shortfall, underscore the opacity and complexity of private-credit funding chains, prompting calls for stronger data governance, collateral verification, and tighter oversight of specialist lenders.

via CNBC|

#bank-exposure #bridge-lending #business

business2 months ago•3 min saved

JPMorgan-Led Lenders Pull Back on FS KKR Capital Amid Rescue Plan

A JPMorgan-led syndicate cut FS KKR Capital’s revolver by about $648 million (roughly 14%) and raised borrowing costs, prompting FS KKR and KKR to commit a $300 million support package—$150 million in new equity and $150 million to buy back shares—after the fund posted roughly $560 million in Q1 losses and nonaccrual loans rose to 8.1%. Moody’s had downgraded the fund to junk in March. Management signaled a tighter, de‑levered strategy with less new lending, while pursuing a $300 million share repurchase and fee waivers as part of the stabilization plan.

via CNBC|

#business #credit-facility #fs-kkr-capital

business2 months ago•2 min saved

Blue Owl soars on SpaceX gains ahead of anticipated IPO

Blue Owl Capital jumped after saying it earned about 10x on its SpaceX investment and has sold roughly half the stake at a $1.25 trillion valuation, with SpaceX expected to pursue a record IPO later this year. The firm also highlighted a ~58.5% fee-related earnings margin and a cushion in loan-to-value ratios despite a software slump, alongside solid first-quarter results and inflows.

via CNBC|

#blue-owl-capital #business #earnings

business2 months ago•3 min saved

Saba Capital’s Liquidity Bids Fall Short in Non-Traded Funds

Saba Capital said its tender offers for non-traded Blue Owl Capital Corporation II and Starwood Real Estate Income Trust shares attracted about $10 million in aggregate face value across 190 trades, mostly from SREIT, with the Blue Owl bid drawing less than 1% of what was offered. The weak response highlights stressed liquidity in private-credit funds amid elevated redemptions, as Blue Owl halted quarterly redemptions and shifted to asset sales; Saba is considering bidding on additional products and aims to be a steady liquidity provider as credit risk is expected to rise into 2027–2028.

via CNBC|

#blue-owl-capital #business #liquidity

business2 months ago•4 min saved

BoE Official Warns Markets Are Overvalued and May Correct

A senior Bank of England official says global stocks look overvalued and due for an adjustment, citing macro risks and a growing private-credit crunch, even as markets hover near records amid geopolitical tension; analysts acknowledge potential downside but are uncertain about timing, with AI-driven valuations complicating the outlook.

via CNBC|

#bank-of-england #business #equity-markets

business2 months ago•3 min saved

BoE Deputy Warns Global Markets Are Overvalued and Could Correct

Bank of England deputy governor Sarah Breeden says asset prices are at all-time highs despite mounting risks, warning a broad market adjustment could come from macro shocks, a private-credit crunch in the shadow banking system, and AI-driven valuations, while stressing the importance of resilience and not predicting timing.

via BBC|

#ai #bank-of-england #business

business2 months ago•13 min saved

Private Credit's Hidden Dangers: A Cautionary Look at Unregulated Lending

Edward Zitron’s Premium piece warns that private credit has become a vast, mostly unregulated market fueling trillions in loans via asset managers and PE firms. Illiquidity, opaque valuation, and inflated software bets have created systemic risk tied to pension and insurance funds, with recent fund troubles (and redemption freezes) exposing how deeply embedded these loans are in the financial system. The author lambastes asset managers for conflicts and misleading labeling, argues that the sector’s reliance on debt-funded growth is unsustainable, and suggests a looming series of smaller crises rather than a single catastrophe as a real threat.

via Ed Zitron's Where's Your Ed At|

#asset-management #business #pensionsretirement-funds

business3 months ago•3 min saved

Q1 Bank Earnings Spotlight Modest Private Credit Exposures

Bank earnings materials reveal private credit exposures to nonbank financials. Citi notes corporate private credit warehouse financing of about $22 billion. Overall, private-credit exposure is small relative to total loan books and is focused on investment-grade, upper-middle-market borrowers. Notable risk sectors include business services, software, and healthcare, with BDCs among counterparties showing varying exposure. Banks view private credit as mainly an institutional, long-term opportunity, though sector scrutiny remains and some retail exits are noted.

via Seeking Alpha|

#banks #business #earnings

economy-and-politics3 months ago•24 min saved

IMF: Private credit won’t spark a 2008-style crisis, but risk remains

IMF official Tobias Adrian says private credit is a key vulnerability but incentives today are better aligned and exposure to private debt is smaller for insurers and pension funds; he argues the private-credit boom isn’t expected to trigger a 2008-style financial crisis, though the IMF warns that a prolonged Middle East war could raise systemic risks and nonbanks could be forced to sell assets, so vigilance remains.

via MarketWatch|

#economy-and-politics #financial-crisis #financial-stability

business3 months ago•5 min saved

Distressed-debt funds chase post-2008 windfall amid private-credit turmoil

Investors specializing in distressed assets are targeting the private‑credit downturn as the biggest opportunity since the 2008 financial crisis, betting on bargains as redemptions hit funds and lenders face exposure shifts to AI-influenced software; while industry leaders warn the cycle could yield outsized returns, some observers caution that hype may outpace reality, as firms deploy capital, raise new funds and brace for tougher conditions.

via Financial Times|

#asset-management #business #distressed-debt

business3 months ago•5 min saved

Private Credit’s Reality Check: Defaults Rise and Liquidity Tightens

Rising loan defaults, asset-quality markdowns, and withdrawal caps are puncturing the private-credit world’s “zero‑loss” narrative, prompting a painful but potentially healthy reset that could spur tighter underwriting and valuations; analysts see default spikes of 8%–9% as painful but not systemic, with stress concentrated in AI‑sensitive software and highly leveraged borrowers.

via CNBC|

#business #defaults #liquidity