Hg is exploring a private credit facility of up to $3bn to support its take-private acquisition of OneStream, as large buyouts increasingly rely on non-bank financing, Bloomberg reported.

The buyout firm is in discussions with Goldman Sachs Alternatives and Blue Owl Capital about providing the debt in the form of an annual recurring revenue loan. The financing would sit at the operating company level, a structure commonly used in leveraged buyouts, and would replace part of Hg’s equity commitment.

The proposed loan size could be reduced if further equity investors join the transaction. Discussions remain at an early stage and terms may still change.

Hg announced earlier this month that it had agreed to acquire OneStream in a $6.4bn transaction alongside minority equity investors General Atlantic and Tidemark. OneStream, which provides financial performance management software to chief financial officers and finance teams, listed in 2024.

The deal delivers a significant windfall for KKR, which was OneStream’s largest shareholder before the take-private and has more than quadrupled its investment, Bloomberg previously reported.

Representatives for Hg, General Atlantic, and Goldman Sachs Alternatives declined to comment. Blue Owl and OneStream did not immediately respond to requests for comment.

The potential financing highlights the growing role of large private credit managers in underwriting multi-billion-dollar buyouts, particularly where recurring revenue software businesses support alternative debt structures amid tighter bank lending conditions.

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