Banks Are Pulling Back: What Private Credit Funds Need to Know Now

For the first time in private credit’s growth era, the banks that fueled its rise are tightening the terms on which they lend. Since late 2025, major U.S. banks have been raising the cost of back-leverage, the credit arrangements through which private credit funds borrow against their loan portfolios via a special purpose vehicle (SPV), and imposing more restrictive terms on those facilities.... By: Troutman Pepper Locke