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Good morning. Today's Daily Pitch features a look at UC Investments' big plan for the Big Ten, and examines the fallout from First Brands' Chapter 11 filing. Also: The PE ecosystem seems positioned for growth heading into 2026. Where do you believe the asset class is headed? Take our anonymous US PE Survey.

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UC Investments' Big Ten offer allows teams to buy down ownership stakes

Bryce Underwood of the Michigan Wolverines throws a pass around Rylon Dillard-Allen of the Washington Huskies on Saturday in Michigan. (Gregory Shamus/Getty Images)

By Jessica Hamlin, Senior Funds Columnist

The University of California's investment arm wants to buy a stake in the Big Ten college athletic conference, then sell ownership rights back to the teams, a reality that could lay the groundwork for private capital in college athletics.

In perhaps the largest case of private capital moving into college athletics to date, UC Investments, which manages the University of California's $190 billion in retirement and endowment assets, has been in discussion with leadership at the college sports conference to put $2.4 billion into a new subsidiary called Big Ten Enterprises, according to reports.

The pending deal includes a clause that will allow any Big Ten member university, which includes Indiana University, Ohio State, University of Maryland and Rutgers, to buy down UC Investments' stake in Big Ten Enterprises to have a larger ownership stake in itself.

The Big Ten would need unanimous approval from these member schools to move forward with the deal, but university officials are pushing back. A group of board members from the University of Michigan and the University of Southern California met last week to discuss the deal and are largely opposed to the idea, Front Office Sports reported.

UC Investments' endeavor would be one of the largest institutional investments into US college sports since 2021, when a combination of new state laws and NCAA rule changes allowed college athletes to start striking outside deals.

Related dashboard: Mapping private equity's pro sports ties

Catch Up Quick

• Growth investor BGF is considering its first external fundraise, which could fetch up to £500 million for investments in UK high-growth companies. The move aligns with the London-based firm's commitment to invest more than £3 billion in UK companies in the next five years. Read more

• Emerging managers' share of venture LP inflows has stabilized at around 29%, suggesting sentiment is shifting. The latest sign: HighVista Strategies has closed a $265 million fund-of-funds, the $10 billion asset manager told PitchBook exclusively. Read more

• Blackstone and TPG are nearing a deal to acquire Hologic, a medical device and diagnostics specialist. It could be one of the largest PE-backed acquisitions in 2025. Go deeper

First Brands' Chapter 11 tarnishes private credit with broad brush

By Zack Miller, Senior Private Credit Reporter

The Chapter 11 filing of auto parts maker First Brands has sparked scrutiny of potential mischief in credit markets, ignited a blame game among lenders and thrown credit nomenclature into sharp relief.

Asset managers are in a race to bring private investments to retail investors. Changes appear to be imminent thanks to President Donald Trump's executive order.

But the push will ultimately require buy-in from retail investors themselves. And multiple media reports that linked the September bankruptcy filing by First Brands to private credit could complicate this effort.

PitchBook LCD defines private credit as directly originated loans to corporate borrowers that are not broadly syndicated. They are typically unrated, and borrowers range from the smallest companies to those generating as much as $100 million in EBITDA.

"Private credit" is also used as an umbrella term for any financing from a non-bank lender, with specialty finance strategies and asset-based lending often lumped into this category, too. With loose definitions and overlapping categories of debt, it's no surprise that observers are muddling private credit and First Brands' Chapter 11 filing.

The bulk of First Brands' term loan debt was originated in the broadly syndicated loan market. The company reported over $6 billion of on-balance sheet debt, including roughly $5.3 billion in term loans.

First Brands' syndicated loans appear in business development company portfolios, and it is also a direct lending borrower. But much of the private credit exposure to the troubled auto parts manufacturer comes not from traditional direct lending, but from supply chain financing.

Beyond its on-balance sheet debt, First Brands' liabilities included $2.3 billion in off-balance sheet debt through special purpose vehicles. First Brands also disclosed $800 million in unsecured supply chain financing liabilities and an estimated unpaid balance of $2.3 billion on its third-party factoring liabilities.

Point Bonita Capital, a Jefferies affiliate, had $715 million invested in First Brands' receivables. For almost six years, it had always been paid on time and in full, until Sept. 15, Point Bonita said in a statement.

"The issues surrounding First Brands are the result of decisions and actions at First Brands, including possible fraudulent or otherwise improper activity," Jefferies Financial Group CEO Rich Handler and president Brian Friedman wrote in a letter to investors. "We learned of the fraud allegations when the rest of the public learned."