Turning Private Credit Into Equity In Tough Times: Q&A

When credit markets get much worse, many private lenders that are tied to leveraged buyout firms could look to turn their loans into equity, said Tero Jänne and Mark Hootnick, who lead Solomon Partners’ capital transformation and debt advisory business.

They spoke to Bloomberg’s Erin Hudson in a series of interviews ended Oct. 4. Comments have been edited and condensed.

Inflation and rates are rising. Are companies feeling the pain?

TJ: In the summer most companies said, “Revenue has been great, we just had a cost issue.” And as they start to go into the fall, they’re saying “well ...