Blackstone, KKR and Harvest Partners Restructure $1.4 Billion Loan Amid Private Credit Markdowns Private equity firms Blackstone, KKR, and Harvest Partners are restructuring a $1.4 billion loan originally provided to support Harvest Partners’ acquisition of Affordable Care, a dental services organization, in 2021. The loan, which was agented by KKR, has come under pressure as private credit lenders mark down the value of the debt due to underperformance in the portfolio. According to recent filings and market reports, Blackstone marked down the value of Affordable Care’s debt to 70 cents on the dollar in the first quarter of 2026, down from approximately 80 cents in the fourth quarter of 2025. This adjustment was disclosed in a BCRED 8-K filing earlier in the week. Other lenders involved in the financing have also adjusted their valuations: Antares marked the loan at about 96 cents in Q4 2025, KKR at 93 cents, and New Mountain Capital marked the first-lien debt at around 80 cents during the same period. Affordable Care was acquired by Harvest Partners in 2021 for approximately $2.7 billion, with the transaction backed by roughly $1.4 billion in private credit financing. While KKR served as the administrative agent for the loan, Blackstone holds the largest portion of the firm’s debt among the lending group. Despite the markdowns, Blackstone emphasized that Affordable Care represents only a fraction of one percent of the fair value of its business development company (BDC) portfolios. The firm stated that it has been proactive in addressing underperforming assets across its portfolio for 18 months and is utilizing its full range of resources to seek to maximize recoveries for shareholders. Harvest Partners, which continues to back the company, has not publicly commented on the restructuring efforts. The situation highlights ongoing stress in the private credit market, particularly in leveraged loans tied to healthcare and dental service providers, as rising interest rates and operational challenges pressure portfolio companies’ ability to service debt. Lenders are increasingly resorting to restructuring and markdowns to manage risk exposure in underperforming assets. As of March 31, 2026, Harvest — Blackstone’s dedicated public market real assets and energy infrastructure equities platform — reported $9 billion in assets under management, with 77% of its investor base composed of tax-exempt entities and a team of 14 professionals. The platform focuses on income-oriented securities in North American midstream, listed energy infrastructure, and renewables markets, though it is not directly involved in the Affordable Care loan restructuring.
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