This Week in Private Credit.
Plus HarbourView Equity Partners secures $500m Media Debt, Warner Bros. Discovery $14.6 debt buy back
Good day,
Asset-Backed Finance (ABF) continues to attract the attention of private credit professionals, especially as more participants enter this space. We also cover the latest industry news and deal-making activity in this week in private credit. You can also check out the key players in Europe's private credit sector and the global tycoons making significant moves within the industry
Now, let’s dive
Industry News
Partners Group, a market leader in global private markets, has seen its private credit evergreen fund grow to €2 billion in assets under management (AUM). (Link)
Legal & General (L&G), the British asset manager, is expanding its private credit portfolio with a £250 million investment in Magnavale Ltd, a UK-based cold storage company. ( Link )
Check out "The Twenty Most Influential People in Europe’s Private Credit ( Link)
Market Insights
Despite uncertainty with the global tariff wars and changing market dynamics, private credit still offers opportunities waiting to be explored with strong credit fundamentals. ( read more )
Talking Point
The Private Credit Tycoons
Wall Street is taking on private credit and the private credit titans are making fortunes dominating and growing it , check out who they are. ( Link ) ,
Dealflow
Technology/ Media / Telecoms
HarbourView Equity Partners, an investment manager focused on the media and entertainment sector, has secured $500 million in debt financing from KKR to expand its music portfolio and manage film and TV rights.
Warner Bros. Discovery is set to initiate a major debt reduction program by repurchasing up to $14.6 billion of its outstanding debt. This will be funded by a $17.5 billion loan from JPMorgan.
Logistics and Transport
Grab Holdings, the Singapore-based super app for ride-hailing, plans to raise $1.2 billion through a convertible bond sale to finance its mergers and acquisitions targets.
Industrial
Urbaser, the Spanish waste management firm, is set to secure a €2.3 billion ($2.6 billion) debt deal to fund a dividend recapitalisation of approximately €1 billion and to refinance existing debt.
Rosebank Industries, a UK-based private equity firm, plans to raise $1.55 billion to support its $1.9 billion acquisition of US-based Electrical Components International.
Pathfinder Tonopah, a private company operating the Tonopah copper and molybdenum project in Nevada, has secured $896 million in financing from the US Export-Import Bank.
Real Estate
Seazen Group, a Chinese real estate developer, is exploring an offshore bond offering to raise up to $300 million.
Apollo plans to provide an $870 million loan to support Neinor Homes' $2.6 billion acquisition bid for Aedas Homes, making Neinor as the largest real estate developer in Spain.
In the Chart
Heading to $3Trillion in AUM with Asset Back Finance(ABF) Opportunities.
The global private credit industry is experiencing significant growth and is projected to reach $3 trillion by 2028, according to Moody's. However, this growth is accompanied by increased competition, which may impact returns. As asset managers seek opportunities for growth and returns, asset-backed finance could present some interesting possibilities, particularly in the realm of investment-grade credit. ( Link)
Source Moodys
Editor’s Picks
Investment-Grade Private Credit vs. Public Credit Markets: The emerging landscape and the opportunities and risks (Link)
Established banks are taking a keen interest in private credit. HSBC is following months of restructuring and job cuts plans to make an entry into the fast growing private credit market (Link).
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