Two more failures in Private Credit as Medallia and Affordable Care lose billions!

Delinquent loans in the Private Credit market continue to go bad as we have two new problems. Medallia, a software maker, can no longer repay about $3 billion in loans. Affordable Care, a dental service company, is in the process of restructuring a $1.4 billion loan to Blackstone and KKR. Overall delinquency in Blackstone’s largest private credit fund has spiked to 2.4% in the first quarter of 2026. In other Private Credit news, Barclays is pulling back on riskier lending after an increase in losses mainly related to MFS, UMB financial outlined its private credit exposure, family offices emphasize caution on private credit investments, and Business Development Companies (BDC) have used a law changed in 2018 to increase leverage, sometimes in ways that are not visible. This episode reviewed multiple articles from The Wall Street Journal and S&P Global (subscription required).