Private Equity Stuck in Limbo Gets Help From Direct Lenders

As private equity firms struggle to sell the companies they own and return cash to investors, their counterparts in the world of private credit are offering special loans to tide them over.

Direct lending arms at shops from Ares Management Corp. to Neuberger Berman Group and even private equity titan KKR & Co. have all launched what some are calling “dequity” funds — to convey the presence of both debt and equity — to the tune of $30 billion industry-wide since 2023, according to data compiled by Preqin.