Private Lenders Take Control of More Companies as Rates Surge

Private credit funds are starting to confront the downside of the easy-money era of the past decade: They’re increasingly taking control of businesses that fall foul of loan agreements.

Direct lending units at European firms such as Arcmont Asset Management, Ardian SAS and Pemberton Asset Management are set to take the keys of companies they lent money to, as the surge in interest rates and a worsening economic climate pile pressure on businesses in the US and Europe.

In the past few months, Arcmont began the process of taking over German cocktail chain Sausalitos, while Pemberton became the owner ...