Happy Monday. Here’s what we’ve got today…

• A look at Golub’s private credit trading desk

• Plus, a possible 7-11 takeover

The private credit market is growing up:

Golub Capital is building out its own private credit trading desk, reports Bloomberg, citing sources familiar with the matter. The firm has already traded around $1 billion of private debt through the first half of this year and is now among the most active participants in the nascent private credit secondary market.

Direct lenders have typically held loans until maturity, with little to no trading activity post-origination. But, as the asset class continues its rapid growth, there is now growing demand for the types of liquidity solutions common in more mature markets.

Golub's trading activities are flexible across different scenarios, either allowing the firm to actively manage its own portfolio risk and reduce exposure to certain credits, free up capital for new investments, or act as a liquidity provider for other lenders looking to exit positions.

With a market that has, in recent years, fielded near-constant criticism over its asset bubble potential and the possibility it proves to be a dangerous regulatory blindspot, critics have been quick to question the wisdom of secondary market back-and-forth trading of assets they think may be of questionable quality.

For borrowers, there's also the potential that this trend cheapens one of the primary draws of private credit: its relationship-driven nature that incentivizes lenders to work closely with borrowers through challenging periods and on unique deals. A more liquid market might encourage some lenders to simply sell out of troubled positions rather than engage in restructuring efforts, and without strong relationships, it may eventually become harder to find financing for assets that don't fit squarely within standard lender criteria — such as a smaller, fast-growing business in an out-of-favor vertical with limited earnings history.

On the other hand, there's every chance that more secondary market liquidity has knock-on effects that lead to greater flexibility in managing portfolio company capital structures and the potential for more favorable pricing on new issuances.

Golub, at least, seems to think these are all non-issues and is continuing its push into the secondary market despite its own heavy emphasis on relationship-based lending. The firm's middle market-focused sponsor finance platform holds repeat relationships with more than 260 private equity firms that consistently account for more than 90 percent of origination volume.

In either case, it does seem likely that, as the market becomes more liquid, there is some degree of convergence between private credit and more traditional syndicated loan markets across documentation, covenant packages, and pricing dynamics.

As this trend plays out in the background, lenders are now more immediately focused on handling a resurgence in activity from banks, who have this year begun aggressively pitching broadly syndicated refinancings of formerly private credit deals.

The early result of their reentry into the market (following last year’s retreat) has been a compression in spreads through the first half of the year, with borrowers either choosing to replace private credit with new broadly syndicated deals or with direct lenders settling for lower pricing to avoid being refinanced out.

• Alimentation Couche-Tard (TSX: ATD), owner of the Circle K convenience store chain, approached 7-Eleven owner Seven & i with a takeover offer that sent shares up more than 20 percent today, reaching a market value north of $38 billion.

• Advanced Micro Devices (Nasdaq: AMD) agreed to acquire ZT Systems, a server maker and AI infrastructure provider, for $4.9 billion in cash and stock.

• Repligen (Nasdaq: RGEN) approached Maravai LifeSciences (Nasdaq: MRVI), a vaccine capping reagent vendor trading at a market value of around $2.5 billion, with an acquisition offer, per Reuters.

• Koch Equity Development agreed to acquire iconectiv, a provider of telecom number portability and data exchange services, for $1 billion from Ericsson (Nasdaq: ERIC).

• Audax Private Equity agreed to acquire Avantor's (NYSE: AVTR) Clinical Services business, a provider of clinical trial and laboratory supply chain solutions, for $650 million.

• AutoScout24, backed by Hellman & Friedman, agreed to acquire TRADER Corporation, a Canadian operator of online automotive marketplaces and provider of dealer software and lender solutions, from Thoma Bravo.

• Nova Biomedical, a privately-held medical device maker focused on blood testing and analysis equipment, is exploring a potential sale that could value the company at more than $2 billion and has drawn interest from both sponsors and strategics, per Bloomberg.

• Empresas Copec agreed to acquire Gasib, Cepsa's liquefied gas business in Spain and Portugal for €275 million.

• Warren Equity Partners acquired MoboTrex, a Davenport, Iowa-based traffic control and mobility solutions provider.

• Guardian Restoration Partners, backed by Alpine Investors, acquired Quick Dry Restoration and Spartan Emergency Water Removal.

• NOVA Infrastructure acquired a 70 percent stake in UGE International (TSXV: UGE), a community solar and battery storage developer with projects in 11 U.S. states.

• Bitwise Asset Management agreed to acquire ETC Group, a London-based crypto exchange-traded product issuer with $1 billion in assets under management.

• Emerald Bay Risk Solutions, backed by Bain Capital Insurance, acquired Mainsail Insurance Co., a provider of property and casualty insurance coverage.

Tech, Vertical SaaS, & Misc. Enterprise

• Fabric Cryptography, a Silicon Valley hardware startup developing cryptographic processing chips, raised $33 million in Series A funding co-led by Blockchain Capital and 1kx, with participation from Offchain Labs, Polygon, and Matter Labs.

• Consensus, an AI-powered search engine for scientific research, raised $11.5 million in Series A funding led by Union Square Ventures, with participation from Draper Associates, Path Ventures, and Alumni Ventures.

Fintech

• Waza, a B2B payment and liquidity provider for emerging markets, raised $8 million in seed funding led by Y Combinator, with participation from Byld Ventures, Norrsken Africa, Heirloom VC, Plug and Play Tech Center, Olive Tree Capital, and Timon Capital.

Healthcare

• Neptune Medical, a gastrointestinal-focused medical device startup, raised $97 million in Series D funding from Sonder Capital and Olympus Corporation of the Americas, among others.

Industrials, Greentech, & Other

• Fernride, a German autonomous electric trucking company, raised $31 million in Series A funding led by Paladin Capital Group, with participation from Lockheed Martin Ventures, Frontline Ventures, Manta Ray Ventures, Lightspeed Venture Partners, Pallas Ventures and 8VC.

• HarbourVest Partners raised $15.1 billion for its 11th private equity secondaries fund, Dover Street XI, plus an additional $3.4 billion for its Secondary Overflow Fund V.

• Radical Ventures raised $800 million for a new fund targeting later-stage AI-first companies, shifting from its previous early-stage strategy.

Interested in partnering with Transacted? If you’re a financial services firm looking to connect with an engaged audience, please reach out.

Got a tip or an idea for a story? Email [email protected], or Tweet/DM @transactedInc