For buyers, middle-market lending sources are more than available. The increased availability of financing makes the landscape very competitive from a lender’s perspective. However, lenders that specialize in a targeted industry or offer flexible debt solutions are more likely to maneuver through the competitiveness, potentially sealing a deal with dealmakers looking for funding. Multiple firms have raised loan funds this year, in particular mezzanine funding.
The rising popularity of mezzanine funds is more apparent now than in recent years. In November, the Carlyle Group LP (Nasdaq: CG) doubled down on its commitment to the energy sector by raising a $2.8 billion mezzanine fund. The credit fund was twice the size of the firm’s inaugural $1.4 billion energy fund in 2012.