Hey everyone,
I posted this in the PE Forum but curious to get the banker perspective as well.
For a lower MM buy-side LBO , we’re raising about $15M of private credit.
One boutique quoted 4.5% success fee (with $500K minimum) and $9.5K/mo retainer for full debt placement process (CIM, lender outreach, diligence coordination, etc.).
Does that sound in-line with what you’ve seen for debt raises of this size?
If you’re at a boutique or MM shop that regularly does this range private credit placements, what’s the typical fee range or minimum you quote?
Also, what are typical terms your seeing from PCFs right now?
I tried to post this one in IB, maybe it's being autosorted here to PE due to tags or something. I don't know how this site works.
Seems a little rich, but depends on who the boutique is. FWIW, I've rarely seen debt advisory on deals this small. Usually the sponsor just does it in-house. The debt advisors that I've seen, I was rarely impressed with. If you PM me with some more details, could help you out.
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