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Direct lending at center stage

Direct lending is a form of private credit when a non-bank lender makes a privately negotiated loan to a small or medium-sized business. Unlike traditional bank loan financing, direct lenders work closely with management teams of those businesses and may offer operational assistance. The opportunity in this space continues to garner attention as banks have retreated from lending, and borrowers increasingly seek out the benefits of direct lending.

Private credit may offer potential structural protections

Direct lending offers potential investor protections through privately negotiated terms, covenants and pricing. BDEBT focuses on senior-secured loans, which sit at the top of the capital structure, and are first to be repaid in the event of default.

Repayment Priority

senior-secured debt
Subordinated debt