Private credit funds take control of Alacrity in $4.3bn restructuring backed by BlackRock

A consortium of private credit funds, including Antares Capital, Blue Owl Capital, KKR, and Goldman Sachs Asset Management, has agreed to take control of Alacrity.

BlackRock had previously acquired a controlling stake in the business from private equity firm Kohlberg & Company in February 2023. The acquisition was part of a $4.3bn long-term private capital strategy. Consequently, BlackRock’s equity investment of over $600m in Alacrity will be written off as part of the restructuring.

When BlackRock made its investment, Alacrity carried around $1bn in senior debt and $500m in junior debt, financed by Goldman Sachs’ wealth management division.

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As part of the deal, the existing debts will be converted into a new $450m term loan and $250m in preferred stock. Furthermore, upon completion of the restructuring, senior financiers will hold 90% of the company’s shares, with Goldman Sachs Asset Management retaining a 10% stake.

This marks the latest significant restructuring in the rapidly growing private credit industry, as companies financed by private equity face challenges from rising interest rates.

The acquisition of Alacrity occurs as BlackRock intensifies its focus on expanding its portfolio of alternative investments. Last year, the firm committed $28bn to acquire leading companies in infrastructure, private credit, and private market data. BlackRock’s private equity division employs diverse strategies and manages $43bn in client assets.

Source: Benchmark Beat

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