Private Markets Alert Newsletter

Issue Number 020 - October 8, 2025 - The Democratization Dilemma & Exit Pressures

Author

The Editor
October 08, 2025 • Estimated Reading Time: 4 minutes

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✍️ Op-Ed: Late-Cycle Democratization

This week exposed private markets' defining contradiction: aggressive retail expansion amid mounting institutional warnings. Blackstone deploys $7 billion into infrastructure through creative debt-equity structures while Simplify launches ETFs bringing private credit to mass affluent investors. Meanwhile, default rates hit 9.5% for smaller private issuers and private equity sits on $3.6 trillion of unrealized value across 29,000 companies. Goldman Sachs' David Solomon warns that private credit formation "reminds me of things we have done in the past when we have got into trouble" while simultaneously launching a Capital Solutions Group to capture the trend. The pattern is familiar: retail access expands precisely as sophisticated players recognize elevated risk. Democratization during late-cycle conditions creates maximum opportunity for intermediaries and maximum risk for unsophisticated entrants.

🤝Top Deals:

  • Blackstone Infrastructure led $7 billion investment in Texas LNG export plant, deploying private credit funds as pseudo-equity for infrastructure financing beyond traditional buyout structures. Read more →

  • Wall Street Banks secured $20+ billion of M&A debt mandates from KKR, Advent International, and other PE firms, reclaiming market share from direct lenders through competitive pricing and relationship leverage. Read more →

  • Simplify Asset Management launched Private Credit Strategy ETF (PCR) providing retail investors liquid access to BDCs and CEFs through swap-based structure with proprietary credit hedge. Read more →

  • Goldman Sachs Capital Solutions formed new group combining financing, financial sponsors coverage, and structured products to operate at "fulcrum" of private credit growth trend. Read more →

  • Sovereign Wealth Funds continue large LBO activity with major infrastructure and energy transition commitments demonstrating long-term institutional capital deployment confidence. Read more →

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