Unit Tranche
topic on 1 show · 2 statements across 2 episodes
2 statements about Unit Tranche, every show
Unitranche deal sizes grew from $300M in 2016 to multi-billion today
“In 2000, let's say, 16, a three or a four hundred million dollar unit tranche was a pretty decent sized deal. By 2019, that was six hundred million dollars, and as you know today, it's multi-billion dollar unit tranches.”
Private credit funds offer 8x leverage covenant-lite loans to hide defaults
“And they basically start buying market share by offering the riskiest loans. So they're offering unit tranche, eight times debt to EBITDA loans with no covenants, and basically because they don't want to show their LPs that any of their loans have defaulted, T…”