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This past week, Blue Owl Capital continued its private credit push by acquiring Atalaya Capital Management for up to $800 million. Oak Hill Advisors and One Investment Management also launched a $5 billion European private credit joint venture—meanwhile, Cinven shut the door on any foray into direct lending.

Private credit firms are introducing a new financing arrangement: synthetic payment-in-kind (PIK) notes. Unlike traditional PIK notes, this structure involves two separate debt facilities: a primary loan and a delayed-draw term loan, which borrowers use to make interest payments on the primary loan. While it offers greater flexibility in navigating PIK exposure limits, critics argue that synthetic PIKs may obscure the true health of private credit funds and their underlying assets.

Last month, Chicken Soup for the Soul Entertainment filed for Chapter 11 bankruptcy, less than two years after acquiring Redbox in a $375 million deal financed primarily by additional debt. In recent weeks, proceedings have devolved into a heated dispute with lenders accusing chairman William Rouhana of severe mismanagement and self-dealing. 

Venture secondaries funds are enjoying a golden age of their own. As traditional exit avenues dry up, Industry Ventures CEO Hans Swildens anticipates this year’s transaction volume to exceed 2023's record levels, projecting sustained growth over the next three years. Click below to learn more. 

Thinking of entering the college sports market? You'd better have your game face on. In the three years since NCAA reversed its ban on athletes earning money from their name, image, or likeness, the market has grown increasingly competitive—with major players like Redbird Capital and Weatherford Capital stepping in. As teams compete to build the best rosters, it’s expected to grow more than 40 percent year-over-year with a projected NIL transaction volume of nearly $1.7 billion in 2024/2025.

Earlier this month, StepStone Group held a $3.3 billion final close for its sixth venture secondaries fund, the largest ever raised for the asset class. The fund, which aims to provide liquidity to founders and investors in mature venture-backed companies, surpassed its $2.6 billion target and beat the previous venture secondaries record—a $1.45 billion fund raised by Industry Ventures last September 

According to estimates from Oxford's Ludovic Phalippou, private equity firms have generated over $1 trillion in carried interest since 2000, with disproportionate accrual to the largest U.S.-based firms. While recent tax reform efforts to reclassify carried interest in the United States have fallen flat, the pressure is on in Europe—which would potentially increase industry taxes by £440 million per year.

CalPERS is doubling down on its commitment to private equity. Last week, the $483 billion pension fund approved a proposal to increase its target private equity allocation from 13 percent to 17 percent, boosting its total private markets exposure to 40 percent (up from 33 percent). Click below to learn more about their strategic shifts.

As climate concerns rise, banks are increasingly wary of fossil fuel deals, leaving private credit to fill the gap. Private credit completed over $9 billion in oil and gas financings in 2022 and 2023, a $450 million increase from the preceding two years. With climate regulations expected to tighten in the coming years, it’s clear that alternative lenders will play a pivotal role in the evolving energy landscape. 

Launching a new fund? You might have to dig deeper into your own pockets. Many reports are showing limited partners are pressuring general partners to increase their personal investment in today's difficult fundraising environment. Though it’s unclear whether this trend is widespread or investor-specific, GPs should gear up to have more skin in the game.