Good morning, {{first_name}}! Today we're covering private credit’s growth and funding gap in Saudi Arabia, how AI is rewriting the dealmaker’s job description, and Penske Automotive Group’s $16.3 billion take-private by Penske Corp and Mitsui.

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MICROSURVEY

PRIVATE CREDIT CORNER

Saudi Arabia is emerging as the Gulf’s biggest private credit opportunity, but the striking number is how small the market still is. Moody’s puts GCC private credit at just $6 billion, versus roughly $1.8 trillion globally, while regional sovereign wealth funds control around $5 trillion in assets.

The financing gap is especially visible in Saudi Arabia. SMEs account for only 9% of bank lending, less than half the national 20% target, while banks have become more selective after loan to deposit ratios reached roughly 110%. Listed corporate debt offers little relief, with corporate bonds and sukuk representing just 2.4% of listed debt.

That leaves private lenders with room to become a genuine second financing channel. The opportunity spans flexible SME capital, larger transactions, and eventually securitization, where a SAR 431 million mortgage portfolio and expected SAR 400 million senior sukuk could provide an early blueprint.

The catch is familiar: growth is easy when the base is tiny. Underwriting discipline, disclosure, and structure will determine whether Saudi private credit becomes an institutional market or simply a fast growing one. (More)

EDITORIAL CONTENT BROUGHT TO YOU BY DATASITE

AI is becoming less of an experiment in M&A and more of the infrastructure behind it. 62% of dealmakers say relying on human-only decision-making in complex deals is no longer defensible, while 71% believe firms that ignore AI will struggle to compete over the next five years.

But AI isn’t replacing every part of the deal equally. Adoption is highest in information-heavy workflows like due diligence, where 49% say AI is already embedded or regularly used. At closing, that figure drops to just 16%.

The emerging division of labor is becoming clearer: AI finds, organizes and challenges the evidence; humans remain responsible for conviction.

For PE firms, that could reshape what separates great dealmakers from average ones. As research and analysis become faster and more standardized, judgment, negotiation, context and accountability become harder—not easier—to commoditize.

Continue reading: AI Is Rewriting the Dealmaker’s Job Description. Explore how AI is reshaping the division of labor in M&A and the skills that could define the next generation of dealmakers.

Go deeper: Explore Datasite’s The New Deal Team: What 1,000 Dealmakers Reveal About AI-Driven M&A for a closer look at how dealmakers are adopting AI across the transaction lifecycle—and where human judgment still matters most.

Join Datasite as the M&A Technology Partner of the AI Data & Insight Private Capital Breakfast in London, an invitation-only gathering at London's May Fair Hotel.

HEADLINE OF THE WEEK

So What? With nearly all economists now expecting another rate increase in December, sponsors face a longer period of expensive debt, constrained leverage, and tougher exit math, making EBITDA growth and operational execution more important sources of returns than multiple expansion. (More)

DEAL OF THE WEEK

Penske Automotive Group is leaving the public markets. Penske Corp and Japan’s Mitsui agreed to take the auto retailer private in a deal valuing the company at roughly $16.3 billion, including debt.

The buyers are hardly strangers. Penske Corp already owns more than 52% of the company, while Mitsui holds more than 20%. The $212 per share offer represents an 8.6% premium to Penske Automotive’s closing price before the proposal became public.

Once the deal closes, expected in Q1 2027, Penske Corp will own roughly 64% of the business, with Mitsui holding the balance.

For dealmakers, the interesting part is the structure. This is less a change of control than a consolidation of it. With more than 70% already held by the buyers, the transaction shows how dominant shareholders can use a take private to remove public market friction without paying the type of premium typically required to win control from dispersed investors. (More)

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DEALS TRACKER

BlackRock (HPS Investment Partners) → Welsh Carson's stake in the CenterWell clinic JVs | ~$2.8B
This is a sponsor-to-sponsor sale. Welsh Carson exits its stake in the joint ventures that own nearly 150 CenterWell Senior Primary Care clinics. The stake moves into a new JV that BlackRock owns the majority of and CenterWell owns the minority of. Announced Oct 19. Read more

Ember Infrastructure → Ashtead Technology (LSE take-private) | ~£505M cash
A US infrastructure PE firm is taking a UK subsea equipment-rental business off the London Stock Exchange, continuing the run of UK small-cap take-privates. Announced Oct 21. Read more

Transom Capital → SoundThinking (tender offer) | $8.00/share cash + 1 CVR
This is an update on a deal already announced. Transom launched its tender offer for all outstanding shares on Oct 20, which is the next step in taking the public-safety tech company private. The total deal value has not been disclosed. Read more

Forward Consumer Partners → Welly, carved out of Unilever | Amount undisclosed
A consumer-focused PE firm is buying the first-aid and bandage brand as Unilever keeps trimming its portfolio. The deal is expected to close in Q4 2026. Announced Oct 19. Read more

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