The Unicrunch is our US private credit newsletter, in which we break down everything from unitranches to ABL — available weekly for 9fin users.

The midway point of the year allows the collective private credit market to stop and take a breath, always yearning for a better half than came before. For some lenders, it is a chance to try their hand at providing debt to companies that formerly had issues. For others, it is the hope that something better is around the corner, even if that feeling is awfully familiar.

Making up for the new times

Has Revlon made up for past issues or is its recent improvement purely cosmetic? That’s what the markets will soon find out as the company eyes an opportunistic refinancing that may lead to the financing of some acquisitions, 9fin reported earlier this week.

The make up brand has endured quite the story over the years. Billionaire owner Ron Perelman gave up his control of the company after four decades at the helm of the company after it exited bankruptcy in 2023.

Then $2bn of debt was shed and since it’s been a much happier story for the company once better known for being at the center of a mistaken $900m payment to creditors by its banker Citi. EBTIDA as of Q1 25 has grown 13% year-over-year and the company sits on $200m of liquidity.

So Revlon has come to the private market now. The age old misperception of private credit is that it funds the companies that the banks turned down. It’s for those deemed too risky. Yet, Revlon arrives in a position of optimism, having secured a $350m asset-based financing from MUFG.

There is also an interesting turnaround story for online health insurance marketplace eHealth. The company is in the market seeing to place between $150m-$200m debt financing with private credit firms.

The company arrives with some momentum. Adjusted EBITDA for Q1 was $12.5m, a significant increase of $14m from the previous quarter, where it stood in the red, 9fin reported this week.

It’s in making a success of such storied credits that private credit professionals have their mettle tested. A whole industry of opportunistic funds thrives today, because companies are increasingly going through bumpier rides. But successes at Revlon and eHealth may show, private credit can be there for the hard times and the good.

The more things change, the more they stay the same

There is something joyful in the familiarity of traditions. As far as 4 July goes, there is the fireworks, the BBQs, and, of course, Joey Chestnut (who returns to Coney Island after a year out!)

We like holidays to be the same. But we were perhaps all hoping that by the halfway mark of this year we would be looking at a very different picture to the one we wrote about last year.

For just like last year, professionals in the private credit space are bemoaning a lack of deal activity. The year began with hope that the second half of the year would provide the M&A spark the market needed, and the market was hopeful the election would clear up some of the hidden volatility as a result of the uncertainty of US government.

Deal volume is slated to tick up slightly, according to data from accounting firm PwC. The first half of 2025 is estimated to produce almost $1.5bn in M&A activity globally, an uptick from $1.41bn in the second half of 2024. However, half-year volume hasn’t been over $1.5bn since the first half of 2022. Private credit feels stuck on the lip of the corn hole board from an M&A perspective. So close to going in but it still needs a good nudge.

So over to you Federal Reserve chair Jerome Powell to provide that nudge. The Fed offered hope that we could see the first one as soon as this month which could be the push the LBO market needs.

That said, tariffs still loom. 9fin has had plenty of discussions about them — even on podcasts and at conferences — and they are no clearer half way through the year than when Trump’s administration announced them in April. Ongoing negotiations that produce a result will be good for the market overall as clarity can produce certainty. But it remains to be seen where the final policy lands.

Yet even if the holiday is here, people are going to work and finding something to do as 9fin’s pipeline shows. Additions this week include Webster Equity seeking a buyer for BayMark Health Services; Acuity Eye Group looking for private credit debt; and Expedited Travel Services is also looking for a private facility, among others testing the market.

At the unofficial halfway point this year, it is looking awfully similar to last. This is almost as tough to swallow as that overcooked burger your friend has just tossed you. Let’s hope the second half of the year can help wash it down.

This week in the 9fin platform

Hilco seeks to wade into private credit with newest fundraising efforts

Webster Equity seeks buyer for BayMark Health Services

Sheridan Capital Partners prepares sale of Tarrytown Expocare

Revlon tests market appetite as performance improves

eHealth looks to refi debt with help from Guggenheim

Vista sells Cvent minority stake to Blackstone

Prax ran up pricy hedge fund debt with Sona, Orchard, NB

LP wrap — Pensions allocate over $2bn to credit, seeking diversification

US private credit pipeline

What’s in market

For a more comprehensive list of live deals, there is 9fin’s US private credit pipeline readers can explore.

eHealth — The online health insurance marketplace is looking to refinance its debt with private credit lenders, 9fin reported. It hired Guggenheim to run the process and is looking for roughly $150m-200m in debt financing.

Revlon — The cosmetics brand has been performing well since emerging from bankruptcy and is gaging interest from private credit lenders for a potential refinancing and M&A process, 9fin reported.

Tarrytown Expocare — The Sheridan Capital Partners-backed pharmaceutical services provider has mandated Houlihan Lokey to facilitate a sale, 9fin reported.

BayMark Health Services — The Webster Equity Partners-backed addiction services provider is looking for a new owner, 9fin reported. Jefferies is running the process with a marketed EBITDA of around $80m.

MGG — The private credit firm is inviting investors to buy a portfolio of performing and non-performing loan assets valued at $250m, 9fin reported. Banner Ridge and Eagle Point are reportedly interested.

From around the web

A pioneer in private credit warns the industry is ruining its golden era (WSJ)

Hedge funds seek to expand into private credit (FT)

Thomas: Retail investors need strong advisors for private credit access (CNBC)

HPS struts into BlackRock as Fink bets big on private credit (BBG)

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