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We help borrowers and lenders structure financing that is negotiated directly, outside the syndicated loan and public bond markets.
Private credit is debt agreed directly between a borrower and a lender, or a small club of lenders, rather than syndicated widely or issued into public markets. Because the terms are bilateral they can be shaped around the actual business. Covenant packages, amortisation, seniority, and call protection are all open to negotiation instead of being fitted to a standard template.
Most of this lending is floating rate, so the lender's return moves with the reference rate over the life of the facility and the borrower carries the rate risk. That is one reason covenant headroom matters as much as it does. A structure that works comfortably at one rate can be very tight a few hundred basis points higher, and the time to allow for that is at documentation rather than at the first test date.
Seniority and security drive both pricing and documentation. A senior secured position with maintenance covenants, tested on a schedule rather than only when the borrower takes a particular action, gives a lender regular visibility into the credit. Lenders also expect to be paid for illiquidity, since a drawn position usually cannot be sold on if the view changes.
Where the facility sits in the capital structure, and what collateral and guarantees stand behind it.
Tests set tightly enough to give early warning, loosely enough not to trip on normal trading.
How floating-rate terms and the inability to sell the position are priced and managed.