Private Credit Shifts Toward Heavy-Asset Companies
Private credit firms are reallocating capital toward "Heavy Asset, Low Obsolescence" (HALO) companies, Bloomberg reports, with Blackstone, Bain Capital, and Brookfield targeting utilities, pipelines, and transport infrastructure. Goldman Sachs strategists warned last month that AI-driven disruption is eroding software and data business models, and investors like Blue Owl and a16z are raising sizable funds—$7 billion and $175 million respectively—to back infrastructure and industrial tech.
Key Points
- 1Shift directs private-credit firms toward HALO companies owning durable physical assets like pipelines and utilities
- 2AI-driven disruption weakens software and data models, prompting reallocations into low-obsolescence capital-intensive sectors
- 3Practitioners should reassess underwriting for industrial exposures and prioritize infrastructure-focused fundraising and due diligence
Scoring Rationale
Industry trend driven by credible sources but limited novelty and only moderate direct technical relevance for practitioners.
Sources
Public references used for this report.
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