Lloyds Bank and Oaktree Capital Management They worked together to help “medium-sized sponsor-backed borrowers” in the UK.
collaboration, Announced On Thursday (18 July), Lloyds’ structured debt finance team will work with Oaktree’s European private debt platform to offer clients term debt, acquisition and working capital facilities, as well as new acquisition and refinancing solutions with representation and full ancillary product services.
“Providing fundraising solutions to sponsor-backed businesses in the UK remains a huge long-term opportunity.” Nael Cartoon“We believe Oaktree’s partnership with Lloyds Bank will provide borrowers with certainty of execution and a fast transaction process, making it a compelling proposition to meet this demand,” said , managing director and portfolio manager of European private debt strategies at Oaktree, in a news release.
The partnership will eliminate the need for multiple capital providers, reducing complexity for customers and allowing them to access additional capital and a range of banking services from Lloyds Bank, according to the announcement.
Oaktree’s European private debt platform is part of its Performance Credit group, which has managed more than $3.9 billion over the past 20 years. The companies said the partnership will enable “single-name retention capacity” of up to £175 million ($225 million) per deal.
Oaktree and Lloyds are looking to lend to mid-sized UK sponsored companies with revenues between £10 million and £75 million.
Earlier this year, PYMNTS investigated the attractiveness of private loans, which can provide businesses with a financial lifeline to stay in business as banks tighten lending.
And as I mentioned here last month, recent research suggests that Federal Reserve Bank of New York It found that non-bank financial intermediaries (NBFIs) have grown over the past decade and hold around 49% of assets as of 2021, while banks’ share has fallen from 45% to 38%.
But in a report titled “Banks and Nonbanks Are Intertwined, Not Separate,” the Fed noted that nonbanks depend on banks for critical lifelines of funding and liquidity.
“The prevailing view is that banks and nonbank financial institutions conduct parallel and distinct activities, or act as proxies conducting substantially similar activities, with banks falling within the scope of prudential regulation and nonbank financial institutions falling outside the scope of prudential regulation,” the report said. “Rather, we argue that the activities and risks of nonbank financial institutions and banks are deeply intertwined and are better described as having changed over time, rather than being unrelated or simply shifting from banks to nonbank financial institutions.”
