Increasingly, private equity funds [1] and credit-oriented hedge funds [2] are at loggerheads. And that has reportedly prompted some private equity firms to conceive blacklists of hedge funds that they would not want as buyers of leveraged loans or other instruments. Some have been pressuring their bankers, who underwrite the debt, to avoid certain funds. The Carlyle Group is said to have a database of friendly lenders. Of course, it's hard for funds to control who owns certain securities once they hit the secondary market. Hedge funds have become very aggressive buyers of this kind of debt and bring a more aggressive approach than do traditional banks. They are certainly not above making a big stink if they've got a problem. We'll likely hear a lot more about this, especially if more target companies undergo more operating problems--which is a possibility.

For more:
- here's an article [3] from Financial News online