Direct lenders hit hard as credit market reels from war and AI
Volatility has come back to credit markets. Artificial intelligence’s impact on corporate earnings, a war in Iran that is ensnaring the rest of the Middle East and upticks in inflationary pressures are weighing on managers

Pension giants’ portfolio shift fuels private credit opportunity
The heavyweight champion of US pensions, California Public Employees’ Retirement System (CalPERS) is adopting a novel model of investing called the Total Portfolio Approach (TPA). Along with Singaporean sovereign wealth fund GIC, they are among a growing number of institutional investors shifting to a strategy that will likely see more capital entering private credit

BDCs make sales to rebalance portfolios and create liquidity
As concerns about liquidity and credit quality mount in private credit, some direct lending vehicles are considering offloading selected assets

Direct lending braces for redrawn landscape
After a stellar 2025, direct lenders are coming under pressure. Large-cap financings are colliding with record tight spreads in public markets, while competition is rising in mid-market lending

Germany plans to invest EUR 108bn on defence in 2026 and EUR 152bn in 2029
Procurement struggles and foreign investment rules mean German defence spending isn’t quite the boon to private credit it might seem

AI will upend operational models in a very short space of time
With online travel firm equities and life insurer CDS already off by a third, the systemic risk of AI is real

Blackstone to launch new private multi-asset products for affluent individuals
The new products, expected to come in the following months, will offer exposure to multiple private market asset strategies at once

Software shakeout delays exits for some, opens buying window for others
Exit alternatives to full sales likely to pick up for software-focused sponsors; disruption may yield opportunities for take-privates, roll-ups of sub-scale players

Eagle Point raises USD 559m to lend to credit funds
The Eagle Point Defensive Income Fund III exceeds the initial USD 500m hard cap

Citi announces debt capital markets co-heads, including a hire from BofA
The new co-heads will fill the open spot left by head of global debt capital markets Rich Zogheb, who is retiring after 40 years in the industry

CalPERS, CalSTRS disclose large commitments to Blackstone credit vehicles
CalPERS invests USD 5.75bn in 3Q25 across seven vehicles; CalSTRS, LACERA reveal allocations totalling USD 750m each

Private credit still deploying despite increasing risks – head of credit at CVC
PODCAST: Andrew Davies, head of credit at CVC Capital Partners, says the present uncertainty offered opportunities to reconsider the pricing of transactions, and the ability to structure those deals more conservatively

Expect more semi-liquid BDCs to enforce liquidity caps if exit rush continues – Fitch
These perpetual nontraded BDCs are not designed for high redemptions over the long-term, and the 5% liquidity limit is a feature designed to protect returns and fairness among shareholders

BlackRock HPS’s semi-liquid private credit fund caps redemption at 5% limit
As exit requests for the perpetual nontraded BDC, HPS Corporate Lending Fund, surge past its original liquidity limits, some investors will not get their money back in full this quarter

Sound Point raises USD 1.5bn for oversubscribed special-sits private credit fund
The latest Strategic Capital Fund III will originate asset-based, first-lien private credit investments to back corporate borrowers seeking transitional or customised financing

Private credit managers rush to cover outflows from perpetual, nontraded BDCs
ANALYSIS: Individual investors, once a reliable source of direct lending dry powder, are redeeming nontraded BDC shares beyond what the product was designed to handle

Credit secondaries surge as GP-led deals dominate and pricing stays tight
Private credit more than doubles share of global secondaries; GP-led deals now 75% of activity, with demand driven by need to generate liquidity ahead

DWS hires former Värde MD to lead ABF business
The appointment underscores the firm’s commitment to private credit after nixing plans to launch a European CLO business last year

Montana, North Carolina systems aim large allocations for real estate debt
Montana commits USD 250m to Walton Street, GoldenTree funds; North Carolina plans USD 1.7bn in commitments, with USD 1bn for real estate debt

Blue Owl takes a hit as ‘retail investors may favor headlines over reality’ – Morningstar DBRS
Offering private market products to retail investors can result in reputational damage even when the terms of the product are respected, the ratings agency wrote

Mid-market manager Kohlberg prices second CLO
Following on from the manager’s first deal in April last year, the private credit issue was valued at just under USD 451m and was arranged via Scotiabank

New York Life Investment Management and Candriam increase Kartesia stake to 80%
The two firms previously held 33% of the ownership of the private debt company, which is expected to enter the European CLO market soon

Moody’s hires global head of leveraged finance
The US head of leveraged finance, Christina Padgett, retired in November, the ratings agency said.  

BlackRock TCP reports new write-downs, wiping out 19% of NAV
Loans on non-accrual now account for 9.7% of cost for the BDC’s portfolio and 4% of fair value, the fourth quarter earnings presentation shows

Golub reset sets fresh AAA market tight for private credit CLOs
Golub Capital Partners CLO 71(M)-R issued its top-of-stack paper at SOFR plus 135bps, two bps inside the previous low