Private Credit’s ‘Back Leverage’ Is Another Pain Point for Funds

Private credit funds, already on the defensive amid an unprecedented investor exodus and a number of defaulting borrowers, are now bracing for a battle with their go-to lenders: major banks.

By Claire Ruckin, Ellen DiMauro, Paula Seligson · Bloomberg Markets

Private credit funds, already on the defensive amid an unprecedented investor exodus and a number of defaulting borrowers, are now bracing for a battle with their go-to lenders: major banks.