Jul 05, 2022

Private Credit/Direct Lending and Syndicated Loan convergence

I work in Europe and can't help but think that the convergence between the direct lending space and the liquid loans market is happening quite quickly, at least here. Big DL deals are now "club" deals with 5/10 even 15+ lenders getting involved. Additionally, a lot of banks are now skipping the launch to general syndication and allocate the debt privately to a small group of lenders.

All that seems to be happening is that big direct lending shops are subbing in from retreating banks into arranging roles (KKR already does this for BSLs), and thus become the ones bending over for sponsors. Most liquid credit shops also have direct lending platforms and often the credit research teams overlap, so really the only ones standing to lose here are the banks and too much is being made of the growth of private credit.

What do we think?

P.S.: i personally think a lot of DL deals are groslly mispriced but that is a discrepancy common in similar private markets and will even out eventually.

2 Comments
 
I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Saepe aut minima qui porro blanditiis. Quis doloribus in rerum illum ut perferendis iste. Libero quae ducimus est quis velit. Eum rem voluptatem esse autem explicabo voluptatem. Excepturi nemo perferendis pariatur doloremque est vitae. Qui et ducimus sint itaque nemo porro.

Career Advancement Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.8%
  • JPMorgan 01 98.2%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

June 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Morgan Stanley 01 98.8%
  • Evercore 01 98.2%
  • BMO Capital Markets 12 97.6%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

June 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Evercore No 98.8%
  • Morgan Stanley 05 98.2%
  • JPMorgan No 97.7%
  • BMO Capital Markets 12 97.1%

Total Avg Compensation

June 2026 Investment Banking

  • Vice President (14) $434
  • Associates (43) $259
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (75) $151
  • Intern/Summer Analyst (68) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”