A club deal is a financing or investment provided jointly by a small group of lenders or investors, each committing directly and negotiating as a group, rather than a single institution underwriting the full amount and syndicating it widely. Terms are agreed collectively, with each participant holding its own share of the facility or equity.
Clubs allow larger amounts than any single lender would commit, while keeping the group small enough to negotiate efficiently.
Common in private credit, real estate finance and mid-market buyouts.
A club deal is a financing or investment provided jointly by a small group of lenders or investors, each committing directly and negotiating as a group, rather than a single institution underwriting the full amount and syndicating it widely. Terms are agreed collectively, with each participant holding its own share of the facility or equity.
Common in private credit, real estate finance and mid-market buyouts.
In a syndication, a single institution underwrites the full amount and then sells it down to a wide group. In a club deal, a small group of lenders or investors each commits directly from the outset and negotiates terms collectively, with each holding its own share of the facility or equity.
When the amount needed exceeds what any single lender or investor would commit, but the parties want a group small enough to negotiate and decide efficiently. Clubs are common in private credit, real estate finance and mid-market buyouts, where speed and direct relationships matter more than broad distribution.
Speak to a partner about how this applies to your transaction.
