The Unicrunch is our US private credit newsletter, in which we break down everything from unitranches to ABL. Sign up for the inside track on this fast-growing market.

Hello and happy new year! Welcome to the first Unicrunch of 2025, where we’re going to get you up to speed on everything you missed since the start of the year, as well as news on 9fin’s first in-person private credit event.

Insurance’s private credit love-in

The name of the game in private credit is to amass and deploy the most capital. And while there’s been many different strategies aimed at accomplishing this, from pulling tens of billions into a single fund to buying smaller firms, these large asset managers know there’s always one reliable source of capital they can turn to: insurance money.

But in recent times insurance firms have shown they are no longer content with being passive investors in co-mingled funds managed by private credit firms. Today, they now want to take a more active role in the strategic direction of the firms they invest with.

Sixth Street is the latest firm to get in on that trend. Earlier this week, the San Francisco-headquartered asset manager announced a partnership with Northwestern Mutual. Per the agreement, Sixth Street will manage $13bn of Northwestern Mutual’s assets, and the insurer will take a minority stake in the investment firm.

Sixth Street joins a long list of firms that have forged such relationships with large insurers.

Apollo was one of the first to ink such a partnership, with its acquisition of Athene. Now, KKR owns Global Atlantic, and Ares has Aspida Holdings. Meanwhile, large independent insurance firms like MassMutual and Prudential are parents to credit firms Barings and PGIM, showing that there are multiple ways for insurance firms to get in on private credit’s returns.

Restructurings galore

As we’ve noted before, even in the relationship-driven world of private credit, restructurings are happening. They’ve especially been hitting the headlines in the aftermath of large liability management transactions and consequent restructurings as in the case of PluralsightPluralsight.

The latest high-profile private credit workout is insurance claims management service provider Alacrity. As we reported in October, the company had kickstarted restructuring talks. This week, lenders finalized what would happen to the company, which has been plagued by liquidity issues and customer churn.

Lenders including Antares, KKR, Blue Owl, and Goldman Sachs have now taken majority ownership of the company. Following the restructuring, the company’s debt will consist of a $450m term loan and about $250m in preferred equity. The deal also includes $175 million of new money to be provided by the first lien lenders, split between a $75 million revolver and a $100 million delayed draw term loan.

Meanwhile, former sponsors BlackRock and Kohlberg will have their equity wiped out. For BlackRock, that means an over $600m equity write down.

Meet and greet

Later this month, 9fin will be hosting its first in-person private credit event, focusing on the question of gender representation in the market.

9fin’s US private credit senior reporter Shubham Saharan will be joined by Richa Tandon, co-head of origination at Benefit Street Partners and Jennifer Daly, head of private credit and special situations at Paul Hastings, to talk about some of the biggest issues in the private credit market.

The event, hosted in partnership with Benefit Street Partners, is scheduled for 28 January between 4:30pm-7pm and will be at Corkbuzz in Union Square. If you’re interested in attending, you can RSVP here.

Do join us for some drinks and nibbles!

This week on the 9fin platform

CLOs take their PIK

Blue Torch provides Black Rifle loan

First Eagle targets non-US investors with Amundi private credit partnership

Private credit lenders ink $4.8bn loan for Catalent buyout

Private credit lenders take the keys on Alacrity

What’s in market

One Call — private credit firms are being called up to refinance the healthcare coordinator’s $1.3bn public debt. The company currently has backed from KKR and Blackstone

Databricks — the AI tech start up is in the market for a $2.5bn loan. JP Morgan is reported to be leading the financing

Neptune Retail Solutions — after first sounding out the BSL market, the retail advertisement company is turning to private credit for a $675m debt package

Frazier & Deeter — the accountancy firm is being marketed on a $20m LTM EBITDA and is proving to be a popular asset as sponsors are bidding up to 15x

Honeywell’s PPE unit — while banks are taking care of the debt financing, a separate $400m preferred equity tranche seems perfectly suited for a private credit firm

Triumvirate Environmental — the waste management services company is in talks with direct lenders to fund a potential sale, which is looking to close at a 13x multiple of its $100 EBITDA. Raymond James has been hired to run the process

Encyclopedia Britannica — Bank of America has been brought on to advise on the sale of the $40m-plus EBITDA company.

Accupac — owner Palladium Equity Partners has tapped Piper Sandler to explore a $200m refinancing for the cosmetic contract development company

Midwest Transit Equipment — the BrightWater-backed distributor of new and used buses is exploring a sale with the help of investment bank Harris Williams

Lycra — The spandex maker is approaching opportunistic credit funds for a $350m debt deal, to partly refinance the company’s existing facilities

Amerit Fleet Solutions — the Brightstar-backed maintenance provider for delivery vehicles is exploring a potential sale with the help of advisors Moelis & Company

From around the web

Point72 Taps Blackstone Veteran for New Private Credit Effort (BBG)

Sixth Street Strikes Deal to Manage $13 Billion of Insurer’s Assets (WSJ)

The big new role for private credit (FT)

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