Direct Lending in the UK
Prior to the 2008 credit crisis, 90-95% of loans to UK SMEs were provided by just five banks. In the aftermath of the crisis (and government bailouts), many banks stopped lending to new customers leading to a funding cliff-edge. Into this vacuum came a new wave of non-bank lenders, able to raise funding from third party investors to further develop the nascent alternative lender market.
From this, Shard Credit Partners was born. Our team has a combined 80 years of professional experience sourcing, originating and executing, and then managing loans worth a combined total of £70 billion-equivalent across Europe and the US. We aim to bring ‘big-deal’ technology, expertise and know-how to the lower mid-market.
Our investment professionals spend a significant amount of time with management teams. We get to know their businesses to provide a thoughtful and bespoke financing solution appropriate for each individual borrower’s specific needs.
We provide senior and subordinated loans to companies based in the UK with EBITDA of at least £1 million. Whether borrowers are private equity or founder/management owned, our financing solutions can support companies in a wide range of situations:
- Primary/secondary and bolt-on acquisitions
- Founder exits/sales to management
- Management buy-outs (MBOs)/management buy-ins (MBIs)
- Leveraged buy-outs (LBOs)
- Leveraged or dividend recapitalisations
- Debt refinancing/consolidation
- Change of control events
- Shareholder consolidation/rationalisation
- Growth capital expenditure
- Products: Senior secured unitranche/stretched senior, second lien, mezzanine and PIK
- Maturity: Bullet/non-amortising and part-amortising
- Interest: Flexible mixture of cash-pay and pay-in-kind (PIK) to suit borrower; PIK-toggle and pay-if-you-can (PIYC)
- Tenors: Three to seven years
- Loan Size: £5-15 million per borrower initially; upper range will increase in future
- Working partnership with local banks to provide working capital facilities on super-senior basis
- Preference to act as sole lender in majority of situations
- Complete structuring flexibility to create bespoke products to suit the borrower
- Sector Focus: Agnostic and exclusively focused on high quality performing companies (no stressed/distressed/turnarounds)
Use our eligibility checker to assess your company’s suitability for our offering.