Private Equity’s Brutal Side Deals Leave Lenders Grasping in the Dark

March 30, 2026

Cadwalader partner Shai Schmidt was featured in Bloomberg’s article, “Private Equity’s Brutal Side Deals Leave Lenders Grasping in the Dark,” discussing the growing use of side deals in private equity-driven liability management exercises, which can leave lenders with limited insight and reduced leverage in restructuring negotiations.

Shai noted that “for lenders, the decision whether to sign is more complicated, given the ‘very limited visibility’ into what their peers are getting.” He added that while side deals are increasingly common, lenders who agree to them give up the ability to join alternative lender groups, which have a “very good track record of increasing such lenders’ leverage in negotiations with borrowers.”

Read the full article in Bloomberg here (subscription required).