Barclays have announced that they are joining forces with BlueBay Asset Management’s Direct Lending Fund to pool their financial resources and offer ‘unitranche’ loans with common terms, a single rate of interest, and effectively ‘one’ lender.
Loans of up to £120 million are available, as part of a service they have described as offering “joint bespoke lending solutions to medium-sized enterprises in the UK in specific deal situations”.
The initiative is designed to work alongside the existing services offered by the two lenders, so that borrowers can access Barclays banking facilities as a connected service.
Barclays’ managing director and head of debt finance, Karl Nolson, said: “We have taken a leading role alongside direct lenders for the past 18 months by providing complementary types of finance.
“Now however, by joining forces with BlueBay’s Direct Lending Fund, we are bringing about a step change in the UK mid-market lending space.”
For borrowers, the benefits include more rapid deployment of approved funds, as the loan need not be negotiated with as much complexity as if it were being approved by multiple lenders acting as separate entities in the deal.
The terms of the loan can also be adjusted to suit the borrowing business involved, to account for specific capital expenditure or acquisition facilities needed as part of pre-existing growth plans.
Anthony Fobel, partner and head of private lending strategies at BlueBay Asset Management, said the collaboration offers both the flexibility and speed of a private debt fund, and the well-established banking services of Barclays as “a leading UK clearer”.