Private Debt offers flexible, bank-independent debt financing, particularly for lower-rated companies, which can be interesting for a wide range of industries, company sizes and financing reasons. Capital providers are usually institutional investors such as specialized private debt funds, family offices or insurance companies.
Advantages
Tailor-made, extremely flexible financing solutions
Fast implementation; short distances
Neither banks nor capital markets required and suitable for medium-sized, lower-rated companies
Whether tenor, rolled-up interest or security structure: Private Debt comes in many different forms. We support you not only in finding the right private debt provider, but also in tailoring the financing to your company’s needs. Please do not hesitate to contact us.
Few financing instruments as flexible as Private Debt
Flexibility is standard for Private Debt. The range of products and services extends from senior or subordinated loans to mezzanine or equity-like capital (more on this here: Mezzanine). For example, flexible interest payment structures or covenants can be agreed with the lenders – just as it makes sense for the company. Tenors of five to eight years are typically possible. Frequently, bullet loan structures mean full repayment is not made until the end of the tenor.
Loans generally start at 5 million euros, however volumes exceeding several hundred million euros are not unusual. Often times, there is one lender on the other side. This is in contrast to bank financings, where often a group of banks jointly provides the financing in a “club deal”. However, a bank can be involved alongside a Private Debt fund, providing working capital financing.
Private Debt as an alternative to the bank
Investors are usually specialised Private Debt funds, insurance companies and other institutional investors such as family offices or pension funds. Among the Private Debt funds there are also specialist funds who focus on companies in turnaround or special situations such as fast refinancings outside the capital markets. Many Private Debt funds see themselves as long-term financing partners, who also contribute their experience and industry network at the operational level, if desired by the company.
