Direct Lenders Are Muscling In on Banks’ Take-Private Deals (1)

Private credit firms are encroaching on the business of investment banks even further — by increasing their share of lending for take-private deals.

Private debt managers at Blackstone Inc. and Goldman Sachs Asset Management this month led a £1.25 billion ($1.58 billion) deal to support EQT AB’s acquisition of Dechra Pharmaceuticals Plc, beating banks to a deal that was the biggest European take-private of the year.

Barings LLC, meanwhile, provided a chunk of the debt backing IK Investment Partners Ltd’s deal for telemedicine firm Medica Group Plc in April.

There are other prospective public-to-private deals in the works with ...