BizNexus Roundup

The Advantages of Disciplined Lower Middle Market Direct Lending

BizNexus Episode 55

This analysis of direct lending markets by Trevor Clark of Twin Brook Capital Partners shows that the Lower Middle Market (LMM) consistently offers higher spreads and stronger lender protections than the Core Middle Market (CMM) and Upper Middle Market (UMM).

Larger borrowers in the LMM pay less, yet experienced lenders can find stable cashflow comparable to UMM companies. Furthermore, LMM has lower leverage and less risk, with more common loan covenants than UMM. Finally, UMM BDC portfolios show a significant degree of overlap, reducing diversification benefits.

About Trevor Clark

Managing Partner at Twin Brook Capital Partners

https://www.linkedin.com/in/trevor-clark-b7397a11/

You can check out that full article here: https://www.linkedin.com/posts/trevor-clark-b7397a11_advantages-of-disciplined-lmm-direct-lending-activity-7254835859756077057-zxe4?utm_source=share&utm_medium=member_desktop

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Our discussions draw from publicly available sources and expert insights, but we strongly encourage listeners to consult the original documents and reports referenced in each episode for the complete context and analysis. The AI hosts' market predictions and deal assessments, while data-driven, are no substitute for professional human judgment and due diligence.

For actual M&A advice, please consult qualified human experts and always go to the source materials to get the full story.


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Show Credits

Intro Music Artist: DJ Freedem | Track: Pretty Boy