Carlyle Group offered largest-ever direct loan of $5.5bn

In today’s top stories, the Carlyle Group will receive the world’s largest-ever loan, towards a 50% stake in health analytics firm Cotiviti. Elsewhere, Tencent-backed Australian payment platform Airwallex is to become a third-party payment provider by acquiring Guangzhou Shang Wu Tong Network Technology. Volatility in the crypto-sphere has pushed investors towards tokens of blockchain platforms that power smart contracts and apps. Canada’s pension fund and US private equity group Silver Lake have offered to buy out Qualtrics. Lastly, China’s Xi Jinping’s has professed mixed emotions with regard to battery titan CATL’s success.

Carlyle to receive largest-ever direct loan

Private creditors including Ares [ARES], Apollo [APO] and Blackstone [BX] are planning to loan the Carlyle Group $5.5bn so that it can acquire a 50% stake in the health analytics firm Cotiviti. Commenting on the size of the deal, Kipp deVeer, head of credit at Ares, told the paper: “If there is a high-quality company and high-quality transaction, most folks will … find plenty of capital and capacity to do that.”

Tencent-backed fintech’s China licence

China has granted a licence to Tencent-backed [0700.HK] Australian payment platform Airwallex for it to become a third-party payment provider by acquiring Guangzhou Shang Wu Tong Network Technology. According to a statement from Airwallex’s chief revenue officer Kai Wu, the licence will help the company “to better address the pain points encountered in cross-border transactions between China and the rest of the world”. The company raised $100m last October at a valuation of $5.5bn.

Smart tokens gain amid crypto volatility

Shares in Silvergate Capital [SI] tumbled as much as 11% Monday as the bank suspended its crypto payments network. Crypto volatility has led investors to consider tokens of blockchain platforms that power smart contracts and apps. MarketVector's Smart Contract Leaders Index, which tracks such tokens, was up 36% year-to-date through Tuesday.

Qualtrics receives $12.4bn buy-out offer

Canada’s pension fund and US private equity group Silver Lake have offered to buy out Qualtrics [XM] for $12.4bn or $18.15 per share. A handful of analysts downgraded the stock in reaction to the news. Evercore ISI analyst Kirk Materne lowered his rating from ‘outperform’ to ‘in line’ and sees limited upside from the deal. Investment bank William Blair lowered its rating from ‘outperform’ to ‘market perform’ on the basis that a seven times revenue valuation is "largely fair”.

CATL attracts Xi Jinping’s attention

Battery making giant CATL [300750.SZ] controls a third of the market, but its dominance has led China’s Xi Jinping to express both joy and concern, reported the Xinhua News Agency. “The worry is that I am afraid of a big boom, first rushing up, and finally dispersing,” the newspaper quoted Xi as saying. Meanwhile, solar panel products imported from China to the US are rising, according to the White House.