👋 Hey, Nick here. A big welcome to the new subscribers from Ohio Police & Fire, Fortress, and Debt Reserve Capital. You’re now one of the 3,320 subscribers, and you’re reading the 181st edition of my private credit newsletter.
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📕 Reads of the Week
Funds raised during higher-volatility periods deliver stronger long-term performance.
Private Credit funds raised in volatile periods outperformed by 3.3 percentage points of Net IRR and 0.2x of TVPI.
👉 Ares: Does Volatility Create Better Vintages?
Market Updates
Carlyle: Global Private Markets Quarterly. Link
Lincoln US Private Markets Index:
70.7% of private companies reported YoY revenue growth
64.0% reported YoY EBITDA growth
Revenue growth increased to 6.9% vs 6.5% in Q1 26
EBITDA growth increased to 5.6% vs 4.7% in Q1 26
Private credit managers eye UK DB pension funds. Link
BDC bond performance has diverged from equity
Where might this divergence lead?
The recent experience of private real estate offers a useful precedent.
During the 2022 dislocation, private real estate vehicles initially resisted the decline seen in publicly traded REITs, only for valuations to converge later through a combination of public market recovery and private market markdowns.
👉 Pimco: What BDC Markets Are Signaling About Private Credit Valuations
Manager & LP Updates
Blackstone led a CDN$2.5 billion “structured equity” investment in Air Canada’s loyalty business.
Investors will receive a minimum IRR of 6.5% if Aeroplan chooses to repurchase the equity stake in Year 5 or Year 8….
Jefferies Credit Partners is raising a ~$1.2 billion private credit secondaries fund. Link
Goldman Sachs Launched a Private Credit CIT for DC Plans. Link
Partnership Updates
Standard Life announced a £2 billion partnership, with CVC, Prudential Financial, Goldman Sachs and MS&AD. The Partnership combines Standard Life’s leading PRT capabilities with CVC’s, PFI’s and Goldman Sachs’ global private markets asset origination. Link
PGIM committed to a $3 billion multi-year forward-flow facility with GreenSky. Link
European Direct lending deal activity is still behind 2025
👉European Private Credit Monitor
Configure Partners’ Private Credit Quarterly
Configure Partners published its Q2 Quarterly Credit Report. Below are my highlights
👉 Read Configure Partners’ Report
US Direct Lending Slowed Materially in Q2
U.S. private equity deal value declined 38% quarter-over-quarter.
Quarterly issuance declined to $34B, less than half the $75B recorded in Q1 2026.
Dry Powder is at record levels ($bn)
What does this mean for private credit?
Most investors believe demand for loans is well in excess of supply.
Most deals have one or no covenants.
Quality deal flow is expected to be the biggest headwind in the next 6 months
👉 Read Configure Partners’ Report
💰Fundraising News
Jefferies’ ~$1.2bn Secondaries Fund
Jefferies Credit Partners is raising ~$1.2 billion for a private credit secondaries vehicle. Structured as a continuation vehicle, the fund will acquire loans previously originated by Jefferies while also committing capital to new lending.
Partners Group $1bn Asia-Pacific Evergreen
Partners Group, a Baar-Zug-based manager, secured a $1 billion private credit mandate from an institutional investor in Asia. The open-ended evergreen mandate targets direct lending opportunities in Asia-Pacific.
Crestline’s $625 million European Capital Solutions Fund II
Crestline, a Texas-based alt manager, closed its $625 million European Capital Solutions Fund II. The opportunities fund invests across the capital stack, lending to asset-backed and lower-middle-market businesses across North and Western Europe. The strategy targets situations underpinned by tangible collateral, including hard assets such as real estate and infrastructure, as well as music royalties and litigation finance.
Northleaf’s $450 million Asset-Based Specialty Finance fund.
Northleaf Capital Partners, a Toronto-based manager, closed its inaugural $450 million Asset-Based Specialty Finance fund. The fund invests in specialist asset-based verticals including entertainment royalties, legal assets, healthcare receivables, and factoring.
Ninety One’s $404m African Opportunities Fund 3
Ninety One, a London and Cape Town-based manager, closed its $404 million Africa Credit Opportunities Fund 3. The fund lends senior secured loans to businesses and critical infrastructure projects across Africa and other emerging markets. The strategy has now deployed over $1.4 billion across ~100 counterparties in over 30 countries.
Homestead’s $350 million Agriculture Credit
Homestead Capital, a San Francisco-based investment manager specialising in US agriculture, announced the first close of its inaugural commingled private credit strategy. The fund originates senior secured loans to agricultural borrowers across the United States, collateralised primarily by farmland and other agricultural assets, addressing financing needs underserved by traditional agricultural lenders. The first close was anchored by a $150 million commitment from the private credit team of a large US state pension system, which views the strategy as an asset-backed lending diversifier within its private credit portfolio. Homestead is targeting $350 million in total commitments with a hard cap of $500 million, and has deployed more than $1.8 billion across US farmland and agricultural assets since its founding in 2012.
Polar Asset Management $215m SRT fund
Polar Asset Management, a Toronto-based alternative investment manager, raised more than $215 million in the first close of its second dedicated significant risk transfer fund. The strategy invests in SRT transactions, through which banks transfer credit risk on loan portfolios to private investors in order to manage regulatory capital. It follows the firm’s first dedicated SRT vehicle and expands one of the faster-growing niches available to private credit investors.
ACP Credit $123 million First Close
ACP Credit, a Poland-based manager, held a $123 million first close for its Fund II. The fund lends €5m–€25m to growing SMEs and mid-sized companies across Central European EU countries.
This newsletter is for educational and entertainment purposes only. It should not be taken as investment advice.