Private Credit Pulse - 4/11/25

Hello and welcome to Private Credit Pulse by Financial Profiles, a weekly account of the latest industry news and views to help you stay current on the buzz in this dynamic space. This week, tariffs and market volatility have significantly impacted lending and the private credit market. Bloomberg’s Going Private points out that banks are retreating in a big way. An estimated $6.5 billion was pulled from US leveraged-loan funds in the week through Wednesday, the sector’s biggest-ever outflow. 

Market Turmoil and Tariffs Complicate Credit Landscape

The recent economic pressures from market turmoil and tariffs have profoundly reshaped the private credit landscape, influencing investor behavior and competitive dynamics. Reuters reports that as market volatility spurs a hunt for cash, private credit secondary sales are set to rise, reflecting investors' need to liquidate holdings for liquidity. Concurrently, trade wars and tariffs are shaking up the market, increasing costs and uncertainty for borrowers. This environment has led to wider private credit spreads, as revealed by recent polls, indicating higher loan pricing due to volatility and tariffs. Amid this chaos, private credit is gaining an edge over traditional banks, leveraging the instability caused by tariffs to offer more attractive financing options. Together, these developments underscore the evolving nature of private credit in response to external economic pressures.

Gaining Momentum in Africa and Europe

The growing prominence of private credit is evident in both Africa and Europe. In Africa, the rise of private credit is addressing a supply and demand mismatch, offering fruitful returns for fund managers and businesses alike. Meanwhile, Europe-focused private credit fundraising has significantly outpaced US efforts, reaching $25.71 billion compared to $9.27 billion raised by US-focused funds. This disparity underscores the differing economic recovery trajectories between the regions, with the EU experiencing renewed growth that contributes to a more favorable environment for private credit and equity fundraising. Together, these trends illustrate the expanding role of private credit in global markets, driven by regional economic dynamics and opportunities.

Firm News

Pantheon Ventures has raised $5.2 billion for secondary investments in private credit assets, capitalizing on increased liquidity needs driven by recent market volatility. 

Ken Kinzel, Churchill Asset Management CEO, discussed the resilience of private credit amid tariffs and market volatility on CNBC’s Fast Money, noting it has performed well during periods of market dislocation. 

First Eagle Investments has launched a private credit fund to provide monthly income through senior secured loans to US middle-market companies. 

Below is a list of other links to help you catch up on this week’s market headlines. 

Private Credit Trends, Analysis & Commentary  

Trump Tariffs Push Wall Street Banks to Private Credit Deals 

Trump's Tariff-Fueled Market Chaos Gives Private Credit an Edge Over Banks 

Private-Credit Fundraising May Face Testing Times 

Private Credit Is Challenging Banks and Changing the Terrain of CRE Finance 

Fed's Goolsbee watching credit conditions amid uncertainty 

Shadow Banking’s Global Risks Loom Amid Market Turmoil 

SEC approves more flexible co-investment relief for BDCs and closed-end funds 

US private corporate credit market worth more than $1.5tn 

How tokenized private credit could hit $17.5B 

Wyoming approves 2 private credit commitments 

BlackRock predicts private credit AUM will reach $4.5tn by 2030 

Avana’s co-founder on how private credit has changed 

Apollo Shares Plunge, PRIV Is Doing Fine After Trump's Tariff Barrage

Firm News, Thought Leadership, and Marketing

KKR: Private Credit 2025 - Navigating Yield, Risk, and Real Value 

Investec appoints private credit director in Europe 

Oaktree's Howard Marks on Credit Yields, Trump's Tariffs {VIDEO] 

Off the Beaten Path with OakTree’s Matt Wilson, Christina Lee, and Jennifer Marques  

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