A Blackstone-led group of private credit investors is set to inject at least $100 million into Medallia Inc., gaining control of the software maker as part of a restructuring, according to people familiar with the matter. The move marks a significant shift in ownership for the customer experience software company, which will now fall under the control of the private credit investors. This type of transaction, where debt holders convert their positions into equity ownership, is a common outcome in distressed situations where companies seek to restructure their balance sheets.

The Blackstone-led group will now steer Medallia's future direction as the company's primary owner, replacing previous equity holders. Private credit firms have increasingly moved into situations where they can convert debt into equity stakes, giving them greater control over companies undergoing financial restructuring.