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a financing route Charlie describes as offering real advantages alongside real risks.
“ Private credit is great for companies looking for faster turnaround on financing, more certainty and more flexibility,” he continues.“ But the flip side is that it’ s typically more costly, there are more covenants, more obligations and the impact of not executing on the plan could, in some instances, be catastrophic for the company.”
That risk is compounded by how quickly a private company’ s financial position can shift. In the short term,
Charlie notes, a business can look healthy simply by having cash on hand. It is only over a longer horizon, if growth or profitability falls short of plan, that the burden of interest payments and covenants begins to constrain a supplier’ s capacity and resilience.
This dynamic is not confined to data centres. Charlie identifies several other sectors where private credit has become similarly active, including SaaS, automotive, consumer products and distressed brands.
He adds:“ It’ s across a much wider set of industries, and I don’ t think procurement teams are necessarily
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