India's M&A Funding Rule Squeezes Private Credit Returns as Banks Enter Acquisition Loans
Updated
Updated · Bloomberg · Jul 2
India's M&A Funding Rule Squeezes Private Credit Returns as Banks Enter Acquisition Loans
2 articles · Updated · Bloomberg · Jul 2
Summary
Moody’s said India’s decision to let banks fund acquisitions could hurt private credit funds by cutting into one of their most profitable lending businesses.
Bank entry into acquisition financing should lower borrowing costs and widen funding availability for dealmakers, the ratings firm said, increasing competition for private lenders.
That competition is likely to compress yields for private credit providers and reduce acquisition-financing deal flow, weakening returns in a key segment of the market.