Private credit funds are returning to their roots amid what has been, in 2024 at least, a one-sided rivalry with the syndicated loan market. This has led direct lenders back to where they had initially made their mark — hybrid-style deals where they snap up junior debt facilities.

Last month we reported that Cinven turned to the private credit market for a junior PIK tranche on top of its senior bank debt for its acquisition of Spanish Idealista. The senior tranche will be levered at up to 3x, with the junior tranche at around 6x, 9fin reported, underlining sponsors' attempts at getting the best of both worlds: the perks of cheaper bank debt as well as higher leverage available in private credit.