Permira Holdings’ deal to acquire Ergomed is being funded with support from Blackstone’s credit unit in the latest sign that that private lending firms are taking buyout business from traditional lenders including banks, according to a report by Bloomberg.
The report cites public filings as showing that Permira’s £703m all-cash deal to buy the UK-listed biopharmaceutical services company is being supported by a £200m unitranche loan and an £85m delayed draw term loan provided by Blackstone.
Private equity firms are increasingly looking to the $1.5tn private credit sector to provide funding for buyout deals which as little as five years ago, were almost exclusively bank business.
In June, private debt funds at Blackstone and Goldman Sachs Asset Management beat banks to a £1.25 billion deal to support EQT AB’s acquisition of Dechra Pharmaceuticals Plc, the biggest European take-private of the year.
