News Digest: Poll reveals rising private credit preference for buyout financing
January 6, 2022
Private credit has emerged as the preferred buyout financing mechanism, as compared to mainstream bank loans, for over 50% of 100 private equity firms surveyed recently by global law firm Dechert.
Meanwhile, 45% of the respondents said they have increased their reliance on private credit for deal financing over the last three years, representing a 10 percentage point hike from the 2020 survey.
The rising adoption of private credit by buyout funds for bankrolling mergers and acquisitions underlines the former’s relatively better customizability and dependability as compared to traditional debt financing routes.