Brutal Week for Private Lenders Ends as Banks Win: Credit Weekly

It was poised to be a massive win for the $1.4 trillion private credit market: a $5.5 billion financing that a group of direct lenders appeared to have wrestled away from some of the world’s biggest banks.

Instead, they were left empty-handed as the deal behind the financing — in which Carlyle Group Inc. would have bought a stake in Veritas Capital-backed health-care technology firm Cotiviti Inc. — collapsed.

That wasn’t the only blow to direct lenders this week. Just months after a group of investment firms agreed to to help finance Blackstone Inc.’s purchase of a ...