Wall Street’s doom-mongers spent years warning that private lenders would be the next bubble to burst when central banks tightened policy. Instead, the funds are becoming even more ubiquitous as companies scramble to refinance debt in a higher interest-rate environment.

Take PetVet Care Centers. The Westport, Connecticut-based company operates 450 veterinary clinics and hospitals across the US and has been owned by private equity giant KKR since 2018. It has been a successful acquisition, but the company is facing a wall of debt maturities that can only be refinanced at higher cost. KKR is providing $600m of additional equity to ease the burden, while private debt lender Blue Owl Capital will extend PetVet a $2.3bn senior loan.