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Rate reversal

The Fed’s decision to make its first cut in interest rates in four years will provide much needed relief for some in the private credit market.

For investors have long awaited a move from the Fed that would help grease the M&A wheels, hoping that any reduction in high rates will aid PE firms in modeling out the costs for potential acquisitions, and thus open up more LBO opportunities that private credit firms have sought after for the best part of two years.