Direct lending takes the place of senior secured debt and floating rate capital traditionally provided by banks, eliminating the need for an intermediary, such as an investment bank.
Direct lending capital is very consistent with a bank loan, floating rate in terms of the coupon and medium term dated capital, typically 5- to 6-years in maturity direct lending tends to be an event-driven type of financing, for middle-market companies with attractive growth prospects and positive cashflow.
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