Private credit is lending provided by non-bank institutions such as specialist debt funds, family offices and private capital providers, rather than commercial banks. It is typically arranged bilaterally or as a club, with terms, security and pricing negotiated on a transaction-specific basis.
Borrowers use private credit when bank financing is unavailable, slow or unsuitable, accepting higher pricing for flexibility, certainty and speed.
Used for acquisition finance, growth capital, refinancing, bridge facilities, project finance and special situations.
Private credit is lending provided by non-bank institutions such as specialist debt funds, family offices and private capital providers, rather than commercial banks. It is typically arranged bilaterally or as a club, with terms, security and pricing negotiated on a transaction-specific basis.
Used for acquisition finance, growth capital, refinancing, bridge facilities, project finance and special situations.
Private credit is provided by non-bank lenders such as specialist debt funds, family offices and private capital providers, whereas bank loans come from commercial banks. Private credit is usually negotiated bilaterally or as a club, arranged faster and structured more flexibly than bank debt, but priced higher to reflect that flexibility and certainty.
A private credit lender focuses on the borrower’s cash flows, the quality of the assets offered as security, the proposed security package and covenants, and a credible repayment or exit route. The strength of the sponsor and the purpose of the facility — acquisition, growth, refinancing or bridging — also shape terms and pricing.
Speak to a partner about how this applies to your transaction.
