Direct Lenders Look to Trade Debt for Thoma Bravo-backed Anaplan and Coupa Software

Reporting: Benjamin Taubman, Geoff Burrows, Dayna Fields Research Analyst: Lexie Wang Direct loans backing Thoma Bravo-backed Anaplan and Coupa Software are some of the latest large privately held loans to see trading interest among private credit lenders, according to sources. Certain private credit managers are considering buying the private debt for the two borrowers, and some incumbent lenders have also expressed interest in selling those loans, sources said. So-called “market makers,” or funds looking to facilitate the trades, are in talks with lenders to transact. Lenders began expressing their intent to trade as early as late March, when business development company, or BDC, redemptions were the most pronounced, one source added. The credit secondary activity is consistent with a broader trend of funds looking to trim their exposure to software assets potentially exposed to AI disruption. Surging BDC redemption requests are putting pressure on managers to rebalance their portfolios away from the software sector. In the second quarter, for example, redemption requests for Apollo Debt Solutions BDC and Blackstone Private Credit Fund reached 16.8% and 10% of shares, respectively. In the first quarter, software heavy BDC Blue Owl Technology Income Corp. received redemption requests from 40.7% of shareholders. In the[...]