Private credit finds exit opportunities among strategic buyers – DBRS
Private credit finds exit opportunities among strategic buyers – DBRS.
With PE dealmaking and exit values dropping significantly in Q2, the private credit market is eager for exit opportunities. One saving grace has been strategic, non-sponsored transactions, according to Morningstar DBRS.
Data compiled by DBRS on discontinued private credit ratings show that an increasing number of borrower sales are related to strategic buyers, a separate category from sponsor-to-sponsor exits, according to a July 8 report.
"While private equity exit activity remains generally suppressed across the middle market, we are encouraged to see growing involvement from non-private equity corporate buyers and the public markets in providing liquidity," said report author Michael Dimler, senior vice president of private corporate credit at DBRS.
For the twelve months through July 3, 2026, more than half of ratings discontinuations related to sponsor exits were attributable to strategic buyers or IPOs, according to DBRS.
Several companies in recent months have announced plans to use IPO proceeds to repay their private credit loans. Applied Aerospace & Defense Inc. announced on May 8 that it would partially repay its $1.02 billion in outstanding debt with proceeds from an IPO. Other companies paying down debt with IPO proceeds include the AI tech developer Syntiant and defense technology company Aevex Corporation .
Others, such as the skincare company Waldencast plc and the healthcare data company Health Catalyst , have paid down their debt with proceeds from spin-off transactions.
Weekly coverage of US and European loans, bonds, private credit, and more.
The main driver of credit rating discontinuations remains refinancing rather than company sales. Roughly 57% of discontinued private credit ratings over the last twelve months were driven by refinancing transactions, DBRS said.
According to PitchBook's Q2 2026 US PE Breakdown report, private equity deal value fell roughly 38% between Q1 and Q2, marking one of the steepest single-quarter declines on record. Exit values fell 46% over the same period.
See the full Morningstar DBRS report, "Sponsor Exits to Strategic Buyers a Growing Source of Private Rating Discontinuations," here .
Sinergia Empresarial continuará el seguimiento de esta información sobre private credit finds exit opportunities among strategic buyers – DBRS y ampliará la cobertura conforme se confirmen nuevos elementos relevantes para el ecosistema empresarial.
