Private Lenders Are Betting Big on the UK Despite Grim Outlook

Private lenders have scored a series of big deals to fund UK businesses, showing that there’s plenty of appetite to back British industry despite fears of a looming recession.

Private credit specialist HPS Investment Partners has provided a roughly £1.1 billion ($1.3 billion) unitranche loan to Ambassador Theatre Group Ltd. That follows on from the likes of Blackstone Inc. making the largest-ever European direct lending deal to UK software business The Access Group.

The run of deals looks set to continue with private lenders aiming to help fund a £3 billion buyout of VetPartners. That reflects the $1.4 trillion ...