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Blackstone, Carlyle Urge Portfolio Companies to Tap Credit

  • Moves could avoid liquidity shortfalls amid stress in markets
  • Blackstone’s talks focus on sectors hit by virus, oil prices
A Blackstone Group Office Location Ahead Of Earnings Figures
Photographer: Mark Abramson/Bloomberg
Updated on

Private equity titans Blackstone Group Inc. and Carlyle Group Inc. are sending a message to portfolio companies: Do whatever it takes to stave off a credit crunch.

Businesses controlled by the firms are joining a growing wave of corporations drawing down bank credit lines to help prevent any liquidity shortfalls amid signs of mounting stress in markets. At Blackstone, which has weathered a variety of crises in its 35 years, the focus is on sectors hurt by the coronavirus, such as the hospitality industry, as well as energy firms facing a slump in oil prices, according to people with knowledge of the matter.