Credit

The company has an agreement with an investor group set to finance the company’s restructuring and allow it to emerge from Chapter 11 protection.

Capital call loans are revealing both why they are useful and why some have flagged their widespread use as posing something of a systemic threat in a downturn.

Many direct lending offerings, including Audax’s, target private equity-backed mid-market deals. Because of its “relative stability,” the strategy is gaining traction in this space, a recent Antares analysis found.

Rising rates – reinforced this week by the Federal Reserve’s vow to continue battling inflation – are motivating LPs to explore asset classes which provide some measure of refuge. One of the beneficiaries appears to be private debt.

Antares’ Fund II is the latest of several new direct lending products to hit the market, all seemingly aimed at growing LP demand for private credit in a rising-rate environment.

Fortress Lending Fund III has so far collected nearly $1.3bn and is expected to wrap up later this year.

Sixth Street created the strategy in response to demand from borrowers and private equity sponsors to bring more capital into the “underserved” large-deal market, sources told Buyouts.

Sixth Street has 'a waiting list' of LPs seeking to commit capital to Tao, a $25bn cross-platform evergreen pool, sources told Buyouts.

Fund III is expected to have soft commitments of $500m to $750m by the end of Q1 2022, according to pension documents.