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Private Lending Consulting
SJKP LLP’s Direct Lending & Private Debt practice offers expert guidance to lenders, funds, and borrowers navigating complex financing structures in various industries.
We specialize in crafting flexible, tailored financing solutions that span capital call facilities, unitranche financing, mezzanine loans, and preferred equity, among others. Our team’s expertise enables us to handle a range of debt structures and address key issues such as subordination, security, and intercreditor agreements.
By combining commercial insight with legal precision, we help clients secure capital while mitigating risks, ensuring that every transaction is executed smoothly and in line with long-term business objectives.
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1. Strategic Advisory in Direct Lending & Private Debt
SJKP LLP's team of experts provides strategic guidance for both lenders and borrowers in navigating the complexities of the private debt landscape. We help clients secure financing solutions that align with their unique business needs while mitigating risk.
Structuring Debt Deals
Our team excels in structuring debt deals to achieve the best possible outcomes. We tailor solutions that fit the specific requirements of both lenders and borrowers, optimizing terms and conditions while minimizing potential risks. For example, in growth-stage financing, we often design hybrid structures that combine senior secured loans with equity kickers, giving lenders downside protection while allowing borrowers flexibility for expansion.
Regulatory Compliance and Tax Considerations
Navigating the complex regulatory environment is key to successful transactions. Our team ensures that all deals comply with federal, state, and international regulations, while providing insights on how to manage tax implications and leverage favorable tax treatments. This includes advising on IRS regulations, SEC disclosure requirements for fund-level lending, and OECD rules for cross-border structures.
2. Direct Lending & Private Debt: Structuring Multi-Tiered Capital Transactions
Our team is well-versed in designing sophisticated, multi-tiered capital structures. Whether advising on unitranche loans or mezzanine financing, we ensure that every deal is structured to meet our clients’ strategic objectives. With expertise in complex subordinations and security arrangements, we ensure that every aspect of the transaction is thoroughly addressed.
Innovative Debt Structures for Complex Transactions
We specialize in designing innovative debt structures that meet the needs of our clients, especially in complex transactions. From unitranche to mezzanine loans, we provide creative solutions to complex financing challenges. In leveraged buyouts, for example, we help private equity sponsors balance senior and subordinated tranches to achieve maximum leverage while maintaining covenant flexibility.
Security and Intercreditor Issues
Handling issues of subordination, security, and intercreditor arrangements is a key part of our expertise. We ensure that these elements are properly addressed and documented, protecting our clients’ interests throughout the negotiation process. We frequently negotiate intercreditor agreements between bank lenders, private funds, and mezzanine providers, ensuring clarity on payment waterfalls, enforcement rights, and standstill provisions.
3. Direct Lending & Private Debt: Navigating Key Regulatory Challenges
Given the growing regulatory landscape surrounding direct lending and private debt, SJKP LLP provides clients with the most up-to-date legal and regulatory insights. Our deep understanding of evolving compliance standards ensures that clients are always prepared to meet regulatory expectations while achieving their financial goals.
Adapting to Changing Regulatory Requirements
As the regulatory landscape continues to evolve, we stay ahead of industry changes. Our team works closely with clients to ensure they are always prepared for the latest regulatory requirements in the direct lending space. This includes adapting to updates under Dodd-Frank in the U.S., AIFMD in Europe, and new disclosure regimes in Asia.
Managing Compliance Risks in Cross-Border Transactions
Cross-border transactions present unique regulatory challenges. We help clients navigate the complexities of international regulations, providing strategies to mitigate compliance risks and achieve their financial objectives. For instance, when structuring lending into emerging markets, we address foreign exchange controls, sovereign risk, and enforceability of collateral, ensuring deals are not only profitable but also legally sustainable.
4. Why Clients Choose SJKP LLP for Private Lending Consulting
Clients turn to SJKP LLP for our ability to combine technical legal advice with commercial acumen. Our private debt practice is known for structuring innovative financing solutions, anticipating regulatory hurdles, and delivering results in high-stakes, cross-border contexts.
Long-Term Value and Strategic Alignment
We do more than close transactions; we ensure that every deal is strategically aligned with our clients’ long-term objectives. Whether advising funds, lenders, or corporate borrowers, we provide insights that help maximize portfolio value and mitigate risks across cycles.
The information provided in this article is for general informational purposes only and does not constitute legal advice. Reading or relying on the contents of this article does not create an attorney-client relationship with our firm. For advice regarding your specific situation, please consult a qualified attorney licensed in your jurisdiction.
