Lloyds Bank and Oaktree Capital Management have announced a strategic partnership to support UK middle-market sponsor-backed borrowers.
The collaboration will involve Lloyds Bank’s Structured Debt Finance team and Oaktree’s European Private Debt platform, offering a comprehensive senior debt solution for new buyouts and refinancings. The package includes term debt, acquisition and working capital facilities, as well as agency and full ancillary product services.
Building on Lloyds Bank’s 20-plus-year history of supporting sponsor-backed UK middle-market transactions, the partnership aims to provide clients with a streamlined, tailored service. This eliminates the need for multiple funding parties, reducing complexity and offering easy access to follow-on capital and a full range of Lloyds Bank’s services.
Lloyds Bank managing director and sponsors and structured finance head James Ranger said: “We have a proven track record of financing sponsor clients’ transactions in the Mid-Market, and by partnering with Oaktree, we can provide a market-leading one-stop solution. As a result, sponsor clients will be able to finance larger transactions without needing to bring on board additional lenders, which will make deals easier to conclude and reduce uncertainty for all concerned.
“Oaktree’s deep expertise in this space makes them an ideal partner for us, and we look forward to further supporting our sponsor clients’ growth ambitions.”
Oaktree’s European Private Debt platform, part of the firm’s Performing Credit group, has deployed over $3.9bn in private credit over two decades. Lloyds Bank’s clients will benefit from Oaktree’s expertise in developing bespoke, efficient financing solutions across multiple sectors, offering quicker decisions and commitments compared to traditional bank lending.
The partnership features a combined single name hold capacity of £175m per transaction, targeting UK middle-market sponsor-backed companies with £10-75m in EBITDA.
Lloyds Bank and Oaktree have committed to a multi-year collaboration. Advisers for Lloyds Bank included PwC, Lloyds Bank Corporate Markets, and Linklaters, while Oaktree was advised by White & Case and EY.
Oaktree Managing Director and European private debt strategy portfolio manager Nael Khatoun said: “Providing financing solutions to sponsor-backed companies in the UK remains a significant long-term opportunity. We believe Oaktree’s Partnership with Lloyds Bank will be a compelling proposition to meet this demand, providing borrowers with certainty of execution and an expedited transaction process.
“Lloyds Bank has long established itself as a market leader in the UK, and we look forward to working with them to provide sponsor clients with a comprehensive one-stop senior debt solution for their capital needs.”
