All Hell Breaks Loose In Private Credit

We thought that Blue Owl's recent unprecedented gating of its biggest retail-focused private credit fund would mark peak chaos for the $1.8 trillion industry for at least a few weeks. We were very wrong.

The biggest news of the week is that the private credit crisis has now jumped across the Atlantic, and as we reported overnight UK private credit lender, Market Financial Solutions (MFS) which specializes in housing bridging loans and which is a mutant melange of all the worst traits of both Tricolor and First Brands - last year's Private Credit implosion superstars - collapsed virtually overnight having previously attracted backing from firms such financial giants as Barclays, Apollo’s Atlas SP Partners unit, Jefferies (which is now two for two after its participation in the First Brands bankruptcy) and TPG. This was the latest crisis to hit both banks and direct lenders, and put a fresh spotlight on asset-based financing, although it's not like the spotlight had been off it.