Planet Networks Inc. pursued a $50 million private credit deal to fund its fiber internet expansion into New York’s Hudson Valley. Instead, its founder alleges a private equity firm used the loan offer to gain access to the company’s trade secrets, while a competing startup under the same firm moved to capture the same region.

The case highlights growing tensions in private credit, where lenders and borrowers often have overlapping investment portfolios. Conflicts of interest can arise when a firm finances one company while backing a rival. Such disputes are becoming more common as the private credit market swells, with deal volume exceeding $1.7 trillion globally.

Investors and regulators will watch this court battle closely for precedent. The outcome could influence how private equity firms structure deals and disclose potential conflicts. For Planet Networks, the fight is about protecting its competitive edge in a lucrative but crowded broadband market.