It is a truth universally acknowledged that a company in possession of strong EBITDA in a world without bank financing must be in want of a private credit fund. But, while much has been made of private credit’s ‘opportunity’ in the wake of Silicon Valley Bank’s collapse last week, the reality is that the aftershocks this time in Europe at least will ripple at the level of fund liquidity and not at the level of dealmaking. 

“SVB has a direct impact at fund level and at company level. The secondary market, the fall in valuation and operation of VC companies is where we’ll all be looking,” said a fund manager at a European direct lending fund.

“The broader buyout segment is unaffected.”