Examining Risk, Return and Relationships in Lower Middle Market Direct Lending

In our view, direct lending in the lower middle market (“LMM”) continues to offer what many financial advisors seek from private credit: the potential for compelling risk-adjusted returns, current cash pay coupons, limited duration risk and inherent structural protections. As the asset class continues to grow, relationship-focused lenders with established sponsor ties and a history of repeat transactions are best positioned to respond quickly to evolving capital needs, structure financing with greater precision, and remain a consistent partner through multiple stages of a company’s growth...

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