Private Credit Helps PE Peers by Making Deal Financing Portable.

Private equity firms are increasingly utilizing portability provisions in loans, allowing the loans to remain intact even when a company undergoes a change in ownership. This trend is driven by owners seeking to complete deals without the need for new financing. Portability provisions benefit lenders by allowing them to stay invested in assets they have already vetted. While portability provisions are becoming more common, they still face hurdles, such as concerns about underperformance or changes in management. Some lenders are stipulating approved buyers to mitigate these risks. [Extracted from the article]