Market Trends 2024: Private Credit and Unitranche Financings

Summary

This practice note outlines the evolution of the private credit and unitranche markets and provides a comprehensive overview of the unitranche financing structure and recent market trends. It includes an in-depth review of the key component parts of the agreement among lenders (AAL) utilized in a bifurcated unitranche deal and describes key bankruptcy-related risks and unique considerations present in the unitranche structure. Finally, this practice note will discuss a modern alternative to the traditional unitranche structure and close with some thoughts on the future of unitranche structures.