The Metrics Brothers

← The Metrics Brothers13 May · 29 min

Private Credit and the Medallia Incident

Private Credit and the Medallia Incident13 May29 min

When a PE firm buys a SaaS company using Private Credit leverage and the growth slows, rates rise, and PIK interest compounds, the equity goes to zero and the lenders take the keys - and the Medallia deal is the clearest example of exactly how that plays out