Private equity firm CVC Capital Partners has shunned the private credit markets in favour of loans from investment banks to finance two of its latest buyouts – restaurant group La Piadineria and vitamin manufacturer Sunday Natural – according to a report by Bloomberg.
The report cites people with knowledge of the matter as revealing that lenders including UniCredit, Crédit Agricole and Natixis beat private lenders to provide a €200m ($218m) loan for the La Piadineria deal, with those lenders expected to sell on some of the debt to a wider group of banks.
CVC also funded its acquisition of German vitamin and supplement manufacturer Sunday Natural with about €200m of financing from banks including Deutsche Bank, UniCredit and UBS Group.
Traditional lenders are beginning to benefit from calmer leveraged loan markets and the prospect of interest rate cuts, which means increased competition for the $1.6tn private credit market.
