Direct Lending

Origination of a bilateral loan where non-bank creditors extend loans to businesses without using an intermediary, such as an investment bank. Direct lending, a subset of private credit, most commonly refers to first-lien loans made to middle-market companies (i.e., typically those with annual revenues of $50 million to $1 billion). 

However, the direct lending asset class can encompass a broader universe beyond first-lien loans to include additional forms of middle-market lending, including second-lien debt, mezzanine debt and unitranche debt (i.e., hybrid loans combining junior and senior debt).