Sales and marketing software provider Validity has turned to direct lenders to finance its acquisition of Litmus, according to 9fin sources.

Private credit lenders are providing around $500m in debt to the company priced in the region of SOFR+500bps at a 98.5-99 OID, the sources said. Direct lenders participating in the financing include Antares and Churchill.

The deal was originally pre-marketed to the broadly syndicated market by bankers at Barclays, sources said, before ultimately being placed with the direct lenders. That BSL package was offered in the region of SOFR+400bps, they added.

Validity is among the latest companies to pivot to private credit as public markets have been roiled in the face of uncertain US tariff policy. Earlier this month, 9fin reported that banks syndicating debt financing tied to ABC Technologies’ acquisition of TI Fluid Systems are sounding out interest from private credit firms due to tariff concerns.

Banks running the debt syndication for Patient Square’s buyout of dental and veterinary service provider Patterson are also considering private credit solutions, the FT reported yesterday.

Validity is backed by private equity firms PSG and Silversmith Capital Partners.

Barclays, Validity and Churchill declined to comment. Antares, Silversmith and PSG did not respond to requests for comment.

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