Goldman Sachs Alternatives is leading a $3.5 billion private loan package to finance the acquisition of Clearwater Analytics Holdings Inc., marking a significant deployment of private credit in the software sector. The financing comes from a consortium of private credit firms, demonstrating continued appetite for direct lending in technology acquisitions.

This transaction represents the latest example of private credit firms stepping in to fund major software deals, bypassing traditional bank financing. Clearwater Analytics, a provider of investment portfolio accounting and reporting software, has become an attractive target for private equity firms seeking to capitalize on the growing demand for financial technology solutions. The size of the loan underscores the scale at which private credit is now operating in the market.

The deal highlights how private credit has evolved into a dominant force in leveraged buyouts, particularly in the technology sector. With traditional lenders pulling back from certain segments, private credit firms have filled the gap, offering flexible financing solutions. This transaction is expected to close though the identity of the acquiring private equity firm was not disclosed in the announcement.