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Private Credit Abundance Signal and a $34B Industrials Disrupting Deal
This week we're covering the largest U.S corporate bond issuers, the U.S average PE deal size, and the $34B Kone TKE deal merger.
Good morning, ! This week we're covering the largest U.S corporate bond issuers, the U.S average PE deal size, and the $34B Kone TKE deal merger.
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MICROSURVEY
What is the biggest vulnerability in private credit right now? |
PRIVATE CREDIT CORNER
Bond Markets Are Open. Sponsors Will Notice.
The biggest U.S. corporate bond issuers in 1Q26 were not distressed borrowers scrambling for cash. They were blue chip names like Amazon at $53.6B, Alphabet at $31.3B, Oracle at $30.0B, and Salesforce at $25.0B. Even major financials joined the queue, with Goldman Sachs and Morgan Stanley each issuing more than $23B.
That matters for private credit because public credit markets are signaling abundance. When investment grade issuers can raise tens of billions efficiently, banks free up balance sheet, spreads tighten, and syndicated markets become more competitive.
For direct lenders, that creates a fork in the road. Large cap sponsor deals may see sharper pricing pressure as borrowers regain financing options. Meanwhile, the better hunting ground shifts lower down market where bespoke structuring, speed, and certainty still command a premium.
The strategic takeaway: private credit alpha in 2026 may come less from simply providing capital and more from solving complexity. Expect more focus on upper middle market carveouts, cross border acquisitions, recurring revenue loans, and rescue capital where bond markets cannot compete. (More)
PRESENTED BY EXACT INSIGHT
95%+ Qualified Respondents Start With a Better Research Process.
Private equity teams do not struggle to find information. They struggle to trust it.
When a deal is live, weak respondent quality can create false confidence, wasted diligence cycles, and more work for teams already moving at speed. Traditional expert networks can help firms access conversations, but access alone does not guarantee quality, repeatability, or decision-ready research. By contrast, Exact Insight is built around 95%+ qualification rates, helping firms start with stronger inputs from the beginning.
That matters even more when timelines are compressed and teams are expected to move from initial diligence to sharper thesis validation without slowing down. If the inputs are inconsistent or difficult to verify, speed quickly becomes a liability rather than an advantage.
That is why more firms are raising the bar on the data behind their diligence. Better decisions start with better inputs.
REGIONAL FOCUS
Bigger Checks, Fewer Swings
The U.S. private equity market is back—but only if you’re playing at the top of the cap table. Average buyout deal sizes have surged to ~$2.0B in 2026 YTD, nearly doubling from sub-$1B levels in 2023. Meanwhile, growth equity is holding steady at ~$200M, signaling a market that’s recovering—but selectively.
What’s happening: capital concentration is driving the narrative. With tighter fundraising and LPs backing fewer managers, GPs are writing bigger checks into fewer deals, primarily targeting cash-flowing, high-quality assets.
In healthcare & life sciences, this is playing out as a barbell: large-cap carve-outs and scaled platforms are in demand, while earlier-stage growth remains cautious.
The bottom line: The market didn’t bounce back—it leveled up, leaving the middle increasingly squeezed. (More)
DEAL OF THE WEEK
Kone Goes Vertical: PE Owners Exit TKE in $34B Mega Deal
Kone just made one of Europe’s boldest industrial bets in years, agreeing to acquire TK Elevator for €29.4 billion ($34.4 billion) from private equity owners Advent International and Cinven. If approved, the combination would create the world’s largest elevator company, leapfrogging Otis and strengthening Kone’s position in the high-margin maintenance and modernization business.
For private equity, this is the headline: reportedly the largest sell-side PE deal in Europe since records began in 1980. Advent and Cinven bought TKE from Thyssenkrupp in 2020 for $18.7 billion. Six years later, they are exiting at a materially larger enterprise value despite a tougher financing backdrop. That is what sponsors call timing.
Strategically, Kone is buying more than scale. TKE brings a stronger North American footprint, where recurring service revenues remain attractive and less cyclical than new installations. Kone is targeting €700 million in annual synergies, a figure large enough to excite bankers and alarm regulators.
The catch: antitrust scrutiny. Elevators are already a concentrated global market, and rivals are unlikely to stay quiet. Translation: this deal may be signed today, but the real work starts in Brussels tomorrow. (More)
"Winners never quit and quitters never win."
Vince Lombardi