Private credit continues its march

Hyland Software, a business software company based in Ohio, relied on Credit Suisse for years to arrange billions of dollars in loans. After the Swiss bank collapsed in March, Hyland switched tracks and borrowed $3.4 billion from a little-known investment firm, Golub Capital, and others that specialize in a Wall Street craze known as “private credit.” High interest rates, driven by the Federal Reserve’s higher-for-longer policy, are shaking up how corporate loans get done. Soaring rates brought down banks such as Credit Suisse and Silicon Valley Bank and forced others to reduce lending. As those lenders stepped back, private-credit fund managers stepped up, financing one jumbo loan for American corporations after another.

www.wsj.com/...