Direct Lending.
Senior secured, unitranche, second-lien, and structured private credit for middle-market operators and sponsor-backed transactions. Disciplined diligence, tailored covenants, and certainty of close.
Overview
Direct Lending, structured for institutional placement.
Direct lending is non-bank, privately negotiated debt provided to middle-market companies. It bridges the gap between bank syndicated debt and high-yield bonds — typically with tighter covenants, faster execution, and more flexibility on structure than the public markets. Summit arranges senior secured, unitranche, second-lien, holdco, and structured equity-debt hybrids for both sponsor-backed and non-sponsored borrowers.
Typical Terms
Qualification
Required Documentation
- 01Confidential information memorandum (CIM) or executive summary
- 02Last 3 years of audited financials and YTD financials
- 03Management adjusted EBITDA bridge with quality of earnings detail
- 045-year financial projections with key driver assumptions
- 05Sources & uses, purchase agreement, and capitalization structure
Process
Confidential evaluation of transaction profile, sponsor, and capital needs.
Underwriting against direct capital and the institutional partner network. Tailored structuring.
Indicative term sheet, followed by formal commitment from our capital partners.
Senior team leads execution. Documentation, closing, and funding handled end-to-end.
Frequently Asked
Questions on direct lending.
What is unitranche debt?+
Unitranche combines senior and subordinated debt into a single facility at a blended rate — simplifying execution and intercreditor mechanics relative to a senior + mezzanine stack.
Do you work with non-sponsored borrowers?+
Yes. A meaningful portion of our direct lending placements are for family-owned and founder-led companies without a private equity sponsor.
What leverage is achievable?+
Senior secured: 3.0 – 4.5× EBITDA. Unitranche: 4.5 – 6.0× EBITDA. With second-lien or holdco notes layered on, total leverage can reach 6.5 – 7.5× for the right credit.
How long does a direct lending process take?+
Indicative term sheet in 1 – 2 weeks of complete file. Confirmatory diligence and documentation in 4 – 8 weeks thereafter, depending on transaction complexity.
Is direct lending more expensive than bank debt?+
Yes — direct lending typically prices 200 – 400 bps wider than bank syndicated debt, in exchange for higher leverage, lighter covenants, certainty of close, and a single lender relationship.
Next Step