LMM Lenders / Private Credit firms

Based on the most helpful WSO content, here are some insights and suggestions for LMM lenders and private credit firms that might be suitable for your needs:

1. Lower-MM Direct Lending Firms:

   • These firms focus on non-sponsored term loans and have a competitive edge in the market. They handle various types of transactions, including growth capital, refinance, LBO/acquisition finance, dividend recaps, and special situations.
   • Example: A lower-MM direct lending firm with $1B+ AUM across multiple funds, industry-agnostic, and capable of sourcing capital easily.

2. BDC's and SBIC Funds:

   • Business Development Companies (BDCs) and Small Business Investment Companies (SBICs) are known for their ability to source capital and provide leverage. They can raise commitments and borrow additional funds to invest, maintaining a spread by lending at higher rates.

3. Alternative Lenders:

   • With banks reducing their risk appetite, alternative lenders have stepped in to fill the gap, particularly in MM lending. These firms have their own credit analysts and are well-versed in fixed income and lending.
   • Example: Firms like Oaktree partnering with mortgage companies to provide underwriting standards and securitize loans for higher returns.

4. Mezzanine/Private Credit Funds:

   • These funds specialize in providing junior debt and mezzanine financing, often working alongside senior lenders to structure deals.
   • Example: Leveraged commercial banking analysts transitioning to mezzanine/private credit funds, handling portfolios of leveraged deals and underwriting loans for PE-backed companies.

For your specific needs, you might consider reaching out to firms that have a strong track record in refinancing and providing DDTLs (Delayed Draw Term Loans) for future M&A activities. Engaging with industry professionals and leveraging connections with portfolio company CEOs, LPs, and lenders can also provide valuable insights and recommendations.

If you need more detailed information or specific firm names, you might want to explore further discussions on WSO or consult with industry experts who have direct experience with these lenders.

Sources: Alternative Lenders & the End of Risk Taking for Banks - Opportunity or Risk?, Q&A: Non-Bank Commercial Lending, Private Credit / DL Megathread, Leveraged Commercial Banking -> Mezzanine/Private credit fund?, Restructuring --> Direct Lending / Private Credit