Unitranches help move senior leverage higher
on direct lender middle market technology sector LBO deals
The increasing popularity of the unitranche loan structure backing direct lending middle market LBOs in the technology sector drove senior leverage levels higher than those in the broadly syndicated market last year.
Tech sector deals have seen persistently high purchase price multiples in recent years. To help meet those rising multiples, unitranche loans, which usually have no junior debt in the stack and typically offer higher leverage,