The growing trade uncertainties together with market volatility caused by tariffs push companies toward private credit financing because it offers rapid funding with flexible terms and clear expectations.
Since early April companies have started choosing direct financing from private credit funds instead of traditional bank loans because of the Trump administration’s unpredictable tariff policies. Traditional bank loan syndication becomes difficult during periods of political and economic instability which forces companies to seek alternative funding solutions.
When market volatility increases the process of bank-led underwriting and distribution becomes more challenging according to Mike Koester co-founder of 5C Investment Partners and former Goldman Sachs executive. The execution speed of private credit investments becomes possible because it maintains ready capital availability.
Private credit has become the preferred financial solution for businesses requiring stability throughout uncertain market conditions while its asset class value has expanded to $2 trillion during the last decade. The $200 million yogurt-maker acquisition by Lakeview Farms received financing from Silver Point Capital because of better loan conditions compared to standard syndicated packages according to sources who understand the transaction.
Lakeview Farms selected Silver Point Capital for financing its $200 million Noosa yogurt-maker acquisition because the terms were more advantageous than what a traditional syndicated loan package would offer. The information about this deal comes from sources who understand its details.
Blackstone and Apollo Global Management together led a $4 billion private credit financing package that supported Thoma Bravo’s acquisition of Boeing’s Jeppesen navigation unit according to sources.
Private credit lenders who face fewer regulatory constraints are capturing increasing market demand because businesses need protection against further tariff disruptions and unpredictable economic policies.
The market demonstrates a fundamental transformation in corporate funding because companies now choose execution certainty above cost considerations when geopolitical uncertainties affect market access. The acceleration of private credit adoption will continue if tariff tensions rise or traditional funding systems experience instability.
The increasing dependence on alternative lenders establishes a permanent change in dealmaking which strengthens private capital’s influence on post-tariff financial operations.
