Private Debt Intelligence – 7/3/2023
Artificial Intelligence in private debt
Although there is a tendency to tag anything as ‘AI’ when possible, it can’t be denied that the technology is making waves. Globally this year, over a third of aggregate deal value raised in private debt went to deals with an artificial intelligence tag, despite just 11 deals taking place in the sector. The emerging nature of the sector means that most of the deals are equity financed, with just 18 deals in 2022 including private debt. However, the two largest deals this year were the take privates of Qualitrics ($13bn), by private equity firm Silver Lake, and Cvent Holding ($4.6bn) by Blackstone and the Abu Dhabi Investment Authority. Neither deal was highly leveraged, with Qualtrics having just $1bn of debt finance and Cvent a relatively conservative $2.25bn.
(Past performance is no guarantee of future results.)
Contact: Laura Messchendorp
laura.messchendorp@preqin.com
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