Lloyds Bank and Oaktree Capital Management have partnered to target British mid-market companies seeking direct lending.
The new multi-year deal will see Lloyds’ structured debt finance team work with colleagues at Oaktree’s European private debt platform to fund buyouts, refinancings and give access to the bank’s corporate services.
Lloyds and Oaktree will be targeting sponsor-backed UK companies with £10m to £75m in earnings. The partnership will have a combined single name hold capacity of £175 million per transaction.
Both businesses are hoping the new proposition offers an appealing alternative for companies who would have otherwise had to endure multiple funding parties.
James Ranger, managing director and head of sponsors and structured finance at Lloyds Bank, said partnering with Oaktree allows the bank to “provide a market-leading one-stop solution.”
He said: “Sponsor clients will be able to finance larger transactions without needing to bring on board additional lenders, which will make deals easier to conclude and reduce uncertainty for all concerned.
“Oaktree’s deep expertise in this space makes them an ideal partner for us, and we look forward to further supporting our sponsor clients’ growth ambitions.”
In a launch statement, the businesses said the new deal will mean borrowers will benefit from quicker decisions and commitments when compared to traditional bank lending.
Nael Khatoun, managing director and portfolio manager within Oaktree’s European Private Debt strategy, added: “Providing financing solutions to sponsor-backed companies in the UK remains a significant long-term opportunity.
“We believe Oaktree’s Partnership with Lloyds Bank will be a compelling proposition to meet this demand, providing borrowers with certainty of execution and an expedited transaction process.”