Bigger Is Better for Private Credit. Maybe
Dreamers look to a $10 billion loan, but realists see risks ahead.
Marc Lipschultz of Blue Owl Capital.
Photographer: Jeenah Moon/BloombergPrivate credit dealmaking is starting to defy gravity. A $5 billion loan to a single company by nonbank lenders would have been unthinkable just a couple of years ago. And yet the market has hit that mark and is looking at doubling it.
“We’re not there yet, but we have moved the bar,” Marc Lipschultz, co-chief executive officer at Blue Owl Capital Inc., said in an interview this week. His firm was one of the lead lenders on this year’s record $5.3 billion loan to refinance Finastra Group Holdings Ltd.’s debt.