Direct Lending
You’ve got a growing business. You’re transferring ownership. You’re completing a buyout. You need capital. We’ve got you.
Direct lending is an avenue for companies like yours to access capital as an alternative to the syndicated loans or senior floating-rate capital traditionally provided by banks. Direct lending loans are provided by "non-bank" lenders, such as institutional investors.
Direct lending loans are primarily first lien, senior secured floating-rate loans, but can also be second lien, revolvers, or accordion/delayed-draw facilities. They have flexible amortization profiles and final maturities that usually range from 5 to 6 years.
The direct lending market has become a permanent source of capital for borrowers. It is largely a leveraged buyout-driven, sponsor-led market, but relies on private placement-style credit and terms underwriting.
We target the middle market, which is typically defined as companies with EBITDA of $10 to $50 million. Our regional office network enables companies to access growth capital globally, across the U.S., Canada, UK, and Europe.
Direct lending loans are primarily first lien, senior secured floating-rate loans, but can also be second lien, revolvers, or accordion/delayed-draw facilities. They have flexible amortization profiles and final maturities that usually range from 5 to 6 years.
The direct lending market has become a permanent source of capital for borrowers. It is largely a leveraged buyout-driven, sponsor-led market, but relies on private placement-style credit and terms underwriting.
We target the middle market, which is typically defined as companies with EBITDA of $10 to $50 million. Our regional office network enables companies to access growth capital globally, across the U.S., Canada, UK, and Europe.
our two cents
Direct Lending
Hear Jeffrey Dickson, Matt Harvey, and Sarah Bittner provide an overview of Direct Lending.
our people
Creative capital, custom solutions.
”The market can be very transactional. It’s short term and somewhat fleeting in terms of relationships – as opposed to what we’ve done for a long time. We take a longer-term perspective.”
matthew harvey
managing director
Our investment focus
- Middle-market companies with attractive growth prospects and positive cashflow
- Typically, EBITDA of $10 - $50 million
- Generalist industry focus with an emphasis on business services, consumer products and services, distribution and logistics, food and beverage, energy, packaging, chemicals, and niche manufacturing companies
- Management teams and owners with an economic stake in the company’s success
Typical uses
- Recapitalizations/dividend recapitalizations
- Growth
- Acquisitions
- Shareholder buyouts
- Generational transfers
- Non-sponsored management buyouts
- Sponsored leveraged buyouts
- Cross-border financings
Typical size
- $25 million - $400 million
Issuer benefits
- Ability to do multi-currency, cross-border transactions
- Flexible prepayment terms
- Relationship-focused capital provider
Structural characteristics
- Floating rate
- Revolvers, accordions, and/or delayed-draw term loans
- 1%-10% yearly amortization with an excess cashflow sweep
- Typical maturities of 5-6 years
Portfolio Companies
We have committed over $4.8 billion of direct lending capital to our partners as of 9.30.20.
“Prudential Private Capital moved quickly to evaluate and propose a capital structure that best supported our strategic expansion project. Their diligence, speed, and certainty of delivery were all critical to completing the transaction.”
Jeffrey Bartoli, Managing Director, Centre Partners Management
Meet the team
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Hello!
We're excited to meet you and look forward to getting to know you. Please reach out with questions or just to say hi.
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