Private credit flexed its muscles in April by entering the €2.42bn debt backing the merger of materials businesses DSM Engineering Materials and Lanxess into new joint venture Envalior. Not only did two private credit funds join a group of investors including credit opportunities funds, CLOs, mark-to-market funds, SMAs and couple of banks orders in the debt, but they actively shaped the terms of the deal in the lenders’ favour. 

“The orders from private credit […] changed a lot of the documents that were not initially kind [to the lenders],” a source familiar said in the 9fin report on the matter.