Beyond Banks: Understanding Direct Lending’s Expanding Role in Corporate Finance
Corporate finance transactions today look very different from those of previous generations. While banks once dominated lending for acquisitions, expansions, and restructurings, their role has narrowed due to regulatory pressures and changing risk appetites. In this evolving environment, direct lending has emerged as a powerful alternative, reshaping how companies access capital and structure financial deals. Direct lending refers to loans provided by non-bank institutions such as private credit funds, asset managers, and institutional investors directly to operating companies. These lenders bypass traditional syndicated loan markets, offering tailored financing solutions that better align with the borrower’s strategic objectives. As corporate finance becomes more complex and time-sensitive, direct lending has become an essential component of modern transaction planning . Why Direct Lending Gained Momentum The rise of direct lending is closely tied to changes in the global banking syst...