Hg is exploring a private credit facility of up to $3bn to finance its $6.4bn take-private acquisition of OneStream. The buyout firm is in talks with Goldman Sachs Alternatives and Blue Owl Capital for an annual recurring revenue loan. This leveraged buyout structure would sit at the operating company level, replacing part of Hg’s equity commitment.

The deal underscores how large buyouts increasingly rely on non-bank financing amid tighter lending conditions. OneStream, a financial performance software provider, went public in 2024. KKR, its largest shareholder before the take-private, stands to more than quadruple its investment. The transaction also involves minority equity investors General Atlantic and Tidemark.

If further equity investors join, the loan size could be reduced. Discussions remain early, and terms are subject to change. The potential financing highlights the growing role of large private credit managers in underwriting multi-billion-dollar deals, especially for software businesses with predictable revenue streams that support alternative debt structures.