Private Debt and Alternative Finance are now formidable asset classes. As traditional banking institutions dramatically scaled back lending in the wake of the financial crisis of 2008, nonbank entities filled the void to supply the market with vital capital. In the years since, private debt markets have seen impressive growth. Private equity sponsors and small- and medium-sized enterprises (SMEs) have found nonbank lenders more accommodating, nimble and responsive to their specific business and sector challenges than traditional banks. As investors search for yield, the private debt markets are an attractive option due to the strong returns offered by this asset class and a welcome complement to private equity deals. This has resulted in continued growth in what remains a relatively new, sophisticated and fast-evolving market. This market has remained active during the ongoing global pandemic, reprising its role during the current financial crisis as a vital, alternative source of capital.

Our Private Debt and Alternative Finance team coordinates with our Private Equity, Corporate and Transactional, Venture Capital, Life Sciences, Health Care Services and other award-winning practices across our broad network to provide responsive, commercial and expert guidance. Our seasoned attorneys and professionals have several years of experience advising credit funds, private equity sponsors, business development companies (BDCs), investment funds, hedge funds and other nonbank lenders on a wide variety of complex private debt transactions. We also advise new ventures, corporate borrowers of all sizes, distressed entities, and other market participants in need of financing of all sizes and complexity.  

While our experience spans a range of industries and sectors, we work most often on deals in the health care, life sciences, consumer goods and technology spaces, including fintech. We possess in-depth knowledge and understanding of each level of the capital structure, including as it pertains to senior secured, first lien/second lien, subordinated, mezzanine and unitranche facilities. We also regularly help our clients navigate various intercreditor issues.

Our Private Debt and Alternative Finance team acts as legal, business and strategic advisor to the institutions and funds devising the most cutting-edge and innovative transactions in the private debt and alternative finance markets. We are deeply involved at every phase of the life cycle of the financing, including originating the debt, the day-to-day administration of the debt, restructuring existing debt, and dealing with enforcement issues and financings in bankruptcy.

Our team’s experience encompasses all forms of the following:

  • Acquisition Finance
  • Direct Lending
  • Distressed Debt and Restructuring Finance
  • Factoring
  • Fund Finance
  • Leveraged Buyout (LBO) Finance
  • Mezzanine Debt
  • Portfolio Company/Borrower Representation
  • Private Equity
  • Special Situations
  • SPV Finance
  • Subscription Line Facilities
  • Venture Capital

Our Private Debt and Alternative Finance clients include:

  • BDCs
  • Companies
  • Credit Funds
  • Family Offices
  • Hedge Funds 
  • Insurance Companies
  • Investment Funds
  • Private Equity Sponsors
  • SMEs
  • SPACs
  • Venture Debt Funds
  • Other Nonbank Lenders
 
  • Advised a global credit investment platform on and relating to a USD 293 million and CAD 26 million unitranche term loan credit facilities to a private equity sponsor connected with an acquisition financing involving U.S. and Canadian entities.
  • Advised a global credit investment platform on and relating to a USD $240 million senior secured term loan and a USD 15 million revolving credit facility to an enterprise information management and IT system management solutions company.
  • Advised a global credit investment platform connected with a USD 250 million senior secured second-lien term loan facility to a distressed energy company with assets in Africa, Asia, Australia, Central America, Europe and South America.
  • Advised a private equity and venture capital firm focused on biopharmaceuticals, medical devices, diagnostics and health care services, on a USD 100 million bridge to a permanent senior secured term loan facility to a pharmaceutical research and development company in the Netherlands.
  • Advised a foreign-based credit investment platform on a USD 8.5 million second-lien term loan to a U.S. based fintech SME.
  • Advised a Nebraska-based private equity fund connected with the financing used to acquire a food manufacturing business.
  • Advised a Texas-based private equity fund in connection with obtaining a subscription-based line of credit from a bank.
  • Advised a Florida-based private equity fund in connection with the financing used to acquire an industrial supply company and related post-acquisition financing transactions.
  • Advised a Chicago-based private equity fund’s portfolio company in various post-acquisition financing transactions, including a working capital facility and a term loan to finance a dividend recapitalization.