Syndicated Lending vs. Private Credit

Summary

This practice note provides an overview of syndicated lending and the private credit market and highlights key characteristics and deal terms found in these types of commercial credit facilities. Syndicated deals involve the public markets as lenders may buy and sell pieces of the loans throughout the course of the facility, whereas in a private credit transaction, the lenders at the time the loan agreement is executed intend to hold those positions for the life of the loan. While syndicated financings often feature more than a handful of lenders, private deals may be bilateral (single lender) or involve only a small group of lenders.