Private Credit Investors to Inject $100 Million Into Medallia in Restructuring

A group of private credit investors led by Blackstone is preparing to inject at least $100 million of fresh funds into Medallia as part of a restructuring that will put them in control of the software maker, according to sources. The investment comes as Medallia works through financial challenges that prompted the restructuring effort.

Private credit investors have taken a more active role in such deals in recent years as traditional financing options have tightened for some companies. Under the terms being prepared, the injection of new capital is expected to stabilize the company's operations.

The move will shift ownership and control to the investor group.

Medallia provides experience management software used by companies to collect and analyze customer and employee feedback. The company went public in 2021 but has faced pressure since then amid broader shifts in technology spending and interest rates.

Private credit funds have increasingly stepped in to provide rescue financing or restructuring capital when public markets or traditional lenders pull back. Bloomberg reported the details of the Medallia transaction citing people familiar with the matter.

The restructuring is the latest example of private credit playing a larger role in corporate capital structures. The investor group is positioned to assume oversight once the transaction closes.