Outlook For Unitranche Financing

“The unitranche was invented in response to broken capital markets, when banks were backing away. Today it’s thriving when markets are booming.”

The size of these financings has also grown dramatically. How large could they get? We remember the same questions being asked about broadly syndicated loans in 2007.

If the largest direct lenders collaborate, a $5 billion unitranche could come by year-end. Particularly with a large software company…

▶︎ Read Aug 16 2021 newsletter: here

▶︎ Chart of the Week: here (by Refinitiv LPC)

(Any “forward-looking” information may include, among other things, projections, forecasts, estimates of market returns, and proposed or expected portfolio composition Past performance is no guarantee of future results. Investing involves risk; principal loss is possible.)