News & Events

Partners Patrick Ryan and Matt Einbinder were quoted in The Deal in an article titled, “Direct Lenders Dial Up Big Deals.” The article explored how direct lending has become a feature of multibillion-dollar buyouts, as well as its development in the middle market. Patrick explained how direct lending grew out of the term B loan market that emerged in the 1990s. He added that term B loans, which typically carry a higher interest rate than traditional bank debt, appeal to investors willing to trade amortization and certain terms for a higher return. Patrick further described that private credit funds developed out of the institutional loan market as financial sponsors saw an opportunity to expand into private credit. Matt noted that credit funds have also adjusted their orientation to the market, stating that while some borrowers focus on issues of future control, “private lenders are also prioritizing the development of lending relationships and often emphasize issues such as pricing, willingness to extend capital, confidentiality and other primary commercial terms.”

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