Private Debt News Weekly Issue #33: Infrastructure Deals and Retail Disruption Drive Growth
Blackstone and Apollo Lead the Charge as Retail Investors and Infrastructure Lending Reshape Private Credit
Welcome to private credit’s power hour, where billion-dollar deals, bold forecasts, and retail’s invasion into alternative assets are shaking up the market. This week, Blackstone flexed its muscles with a $1.1 billion financing package, Apollo set its sights on $40 trillion in private credit, and retail investors continued flooding into the space, reshaping an asset class once reserved for institutional elites.
But it’s not all roses. Spreads are compressing as capital piles into a shrinking pool of opportunities, and the race to balance transparency with growth is creating friction. In short: private credit is booming, evolving, and, yes, getting a little messy. Here’s your front-row seat to the action.
Recent Deals
Blackstone’s $1.1 Billion Boost to NSI Acquisition
Blackstone served up a $1.1 billion private credit package to fund Sentinel Capital Partners’ acquisition of NSI Industries, a leader in electrical and HVAC products.
The Breakdown:
$860M term loan
$150M revolver
$150M delayed draw term loan at 5% over SOFR.
Why It’s Big: Private credit’s agility outshines traditional banking once again, structuring a deal that’s fast, flexible, and tailored.
Blackstone and Apollo Play the Long Game in Infrastructure and Energy
Sustainability is the new battleground, and the giants are moving in.
Blackstone: Snapped up $1 billion in infrastructure loans and dropped $288 million into solar and storage firm Pine Gate Renewables.
Apollo: Declared asset-based finance—already a $20 trillion industry—as the driver of private credit’s march to $40 trillion by 2030.
The Takeaway: Infrastructure and renewable energy are no longer niche; they’re the future of private credit.
Goldman, KKR, and Jefferies Back €900M Synthon Buyout
A €900M debt package funded the buyout of Synthon International, underscoring private credit’s growing influence in European healthcare transactions.
Why It Matters: Europe is heating up as a battleground for cross-border deals, and private credit is taking the lead where banks are too slow or conservative.
Key Market Trends
Retail Investors Flood Private Credit: A Tidal Wave of Change
Private credit is no longer the exclusive playground of pensions and endowments—retail investors are crashing the party.
The Numbers: Interval funds now manage $85 billion, up from $25 billion in 2020, with 43 new funds launched in 2024 alone.
ETF Invasion: Apollo and State Street are lobbying for SEC approval of private credit ETFs, which could bring daily liquidity to an illiquid asset class.
The Shift: Retail investors could account for 23% of private credit allocations within three years, fundamentally altering the market.
The Question: Is private credit ready for mom-and-pop investors—or is this a recipe for opaque products and trapped capital?
Blackstone’s Investment-Grade Pivot: The Billion-Dollar Bet
Blackstone made high-profile hires from KKR and Ares to expand into investment-grade private credit.
New Focus: Loans backed by data centers, consumer credit, and energy transition projects.
By the Numbers:
BXCI already manages $350 billion in credit assets.
Blackstone’s goal? $1 trillion in credit assets by 2034.
Why It’s Bold: Investment-grade credit offers lower margins but higher stability, marking a strategic shift as private credit matures.
Spreads Compress, Tensions Rise
It’s a jungle out there as capital floods the market, and everyone wants a piece of the private credit pie.
The Problem: Excess liquidity chasing a shrinking pool of deals is driving spread compression, especially in sub-investment-grade markets.
Apollo’s Warning: Some transactions are now priced beyond their risk-adjusted value. The firm is passing on deals it would’ve embraced a year ago.
European Opportunity: Apollo is placing strategic bets on real estate in the UK and media rights deals in Portugal and Spain, aiming to outflank competitors in underexplored markets.
Forward Outlook
$40 Trillion Vision: With private credit projected to hit $40 trillion by 2030, the sector is set to become as integral to finance as public markets.
Retail’s Role: As ETFs and interval funds open the gates to individual investors, the industry must navigate transparency, liquidity, and education challenges.
Sustainability Takes Over: Infrastructure, renewables, and asset-based finance will dominate, cementing private credit’s role in global transformation.
The Fight for Margins: With spreads tightening, innovation and strategic positioning will separate winners from losers.