How Will Private Credit Impact M&A Transactions?

The phenomenon of private credit has come to Canada in the last few years, and its presence is expected to increase here as in the rest of the world. According to Preqin data, private debt accounted for 77% of global leveraged buyout financing in 2024, its highest annual share since at least 2015, as certain traditional banks have retreated from funding leveraged buyouts. The spectrum of private credit lenders in Canada is quite broad and includes any non-bank lender, such as funds and business development companies. In addition to Canadian private credit lenders, Canada has seen an influx of U.S. and other foreign private credit providers enter the domestic market.

Entry to the Canadian market