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Direct Lending

You’ve got a growing business. You’re transferring ownership. You’re completing a buyout. You need capital. We’ve got you.
Direct lending is an avenue for companies like yours to access capital as an alternative to the syndicated loans or senior floating-rate capital traditionally provided by banks. Direct lending loans are provided by "non-bank" lenders, such as institutional investors.

Direct lending loans are primarily first lien, senior secured floating-rate loans, but can also be second lien, revolvers, or accordion/delayed-draw facilities. They have flexible amortisation profiles and final maturities that usually range from 5 to 6 years.

The direct lending market has become a permanent source of capital for borrowers. It is largely a leveraged buyout-driven, sponsor-led market, but relies on private placement-style credit and terms underwriting.

We target the middle market, which is typically defined as companies with EBITDA of US$10 to US$50 million. Our regional office network enables companies to access growth capital globally, across the US, Canada, UK, and Europe.
our two cents

Direct Lending

Hear Matt Harvey, Jeff Dickson, and Sarah Bittner provide an overview of Direct Lending.
our people

Creative capital, custom solutions.

”The market can be very transactional. It’s short term and somewhat fleeting in terms of relationships – as opposed to what we’ve done for a long time. We take a longer-term perspective.”

matthew harvey
managing director
Our investment focus
  • Middle-market companies with attractive growth prospects and positive cashflow
  • Typically, EBITDA of US$10 - US$50 million
  • Generalist industry focus with an emphasis on business services, consumer products and services, distribution and logistics, food and beverage, energy, packaging, chemicals, and niche manufacturing companies
  • Management teams and owners with an economic stake in the company’s success
Typical uses
  • Recapitalisations/dividend recapitalisations
  • Growth
  • Acquisitions
  • Shareholder buyouts
  • Generational transfers
  • Non-sponsored management buyouts
  • Sponsored leveraged buyouts
  • Cross-border financings
Typical size
  • US$25 million - US$400 million
Issuer benefits
  • Ability to do multi-currency, cross-border transactions
  • Flexible prepayment terms
  • Relationship-focused capital provider
Structural characteristics
  • Floating rate
  • Revolvers, accordions, and/or delayed-draw term loans
  • 1%-10% yearly amortisation with an excess cashflow sweep
  • Typical maturities of 5-6 years
Portfolio Companies
We have committed over US$5.2 billion of direct lending capital to our partners as of 30.12.20.
“Pricoa Private Capital moved quickly to evaluate and propose a capital structure that best supported our strategic expansion project. Their diligence, speed, and certainty of delivery were all critical to completing the transaction.”
Jeffrey Bartoli, Managing Director, Centre Partners Management
Meet the team
Matt Harvey portrait
Matt Harvey
Managing Director
+1.312.565.6296
direct lending
Amanda Fallaw portrait
Amanda Fallaw, CFA
Director
+1.770.701.2422
direct lending
Jack Gilbert portrait
Jack Gilbert
Director
0203 837 3404
direct lending
Chris Halloran portrait
Chris Halloran
Senior Vice President
+1.214.720.6235
direct lending
PJ LaFemina portrait
PJ LaFemina, CFA
Vice President
+1.312.228.6512
direct lending
Anthony Ma portrait
Anthony Ma
Vice President
+1.312.565.6230
direct lending
Pricoa Private Capital (‘PPC’) is a trading name of PGIM, Inc. (‘PGIM’), the principal asset management business of Prudential Financial, Inc. ('PFI'), and it is also a trading name of PGIM Private Capital Limited and PGIM Private Capital (Ireland) Limited. In the United Kingdom, information is issued by PGIM Private Capital Limited with registered office: Grand Buildings, 1-3 Strand, Trafalgar Square, London, WC2N 5HR. PGIM Private Capital Limited is authorised and regulated by the Financial Conduct Authority (“FCA”) of the United Kingdom (Firm Reference Number 172071) and registered in England No. 1331817. In the European Economic Area (“EEA”), information is issued by PGIM Private Capital (Ireland) Limited with registered office: Pramerica Drive, Letterkenny Business and Technology Park, Letterkenny, Co Donegal, F92 W8CY, Ireland. PGIM Private Capital (Ireland) Limited is authorised and regulated by the Central Bank of Ireland and registered in Ireland under company number 635793 operating on the basis of a European passport. In certain EEA countries, information is, where permitted, presented by PGIM Private Capital Limited in reliance of provisions, exemptions or licenses available to PGIM Private Capital Limited under temporary permission arrangements following the exit of the United Kingdom from the European Union. These materials are issued by PGIM Private Capital Limited and/or PGIM Private Capital (Ireland) Limited to persons who are professional clients as defined  under the rules of the FCA and/or to persons who are professional clients as defined in the relevant local implementation of Directive 2014/65/EU (MiFID II).