{"id":42682,"date":"2015-05-19T00:00:00","date_gmt":"2015-05-18T22:00:00","guid":{"rendered":"https:\/\/techma.bakertilly.es\/que-son-los-fondos-de-deuda-direct-lending\/"},"modified":"2024-07-22T13:41:35","modified_gmt":"2024-07-22T11:41:35","slug":"fondos-de-deuda-o-direct-lending-a2","status":"publish","type":"diccionario","link":"https:\/\/techma.bakertilly.es\/en\/como-hacer\/fondos-de-deuda-o-direct-lending-a2\/","title":{"rendered":"What is direct lending or debt funds? Definition, typology and examples"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Contents\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/techma.bakertilly.es\/en\/como-hacer\/fondos-de-deuda-o-direct-lending-a2\/#%C2%BFQue_es_el_Direct_Lending\" >What is Direct Lending?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/techma.bakertilly.es\/en\/como-hacer\/fondos-de-deuda-o-direct-lending-a2\/#%C2%BFComo_funciona_el_Direct_Lending\" >How does Direct Lending work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/techma.bakertilly.es\/en\/como-hacer\/fondos-de-deuda-o-direct-lending-a2\/#%C2%BFPor_que_el_DL_es_mas_flexible_y_agil_que_la_Financiacion_Bancaria\" >Why is DL more flexible and agile than Bank Finance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/techma.bakertilly.es\/en\/como-hacer\/fondos-de-deuda-o-direct-lending-a2\/#Principales_ventajas_del_Direct_Lending\" >Main advantages of Direct Lending<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/techma.bakertilly.es\/en\/como-hacer\/fondos-de-deuda-o-direct-lending-a2\/#Diferencias_con_el_Capital_Riesgo\" >Differences with Venture Capital<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/techma.bakertilly.es\/en\/como-hacer\/fondos-de-deuda-o-direct-lending-a2\/#Usos_del_Direct_Lending\" >Uses of Direct Lending<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/techma.bakertilly.es\/en\/como-hacer\/fondos-de-deuda-o-direct-lending-a2\/#Fondos_Direct_Lending_en_Espana\" >Direct Lending Funds in Spain<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%C2%BFQue_es_el_Direct_Lending\"><\/span><strong>What is Direct Lending?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Direct Lending or Debt Funds are a <strong>direct form of financing<\/strong> to the company, without the intermediation of financial institutions. Its actors are investment funds, which grant loans to companies with the aim of obtaining a return on their investors' capital.<\/p>\n\n\n\n<p>This funding<strong> alternative to banking<\/strong>The Spanish fund of funds, consolidated in countries such as the US and the UK, is gaining strength in Spain. At first, these funds were international or had foreign participation, although little by little funds of Spanish origin have been emerging.<\/p>\n\n\n\n<p>El <strong>P2P lending<\/strong> and the platforms of <strong>crowdlending <\/strong>are sometimes considered as part of the DL sector.<br><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/images.unsplash.com\/photo-1611095790444-1dfa35e37b52?ixid=MnwxMjA3fDB8MHxwaG90by1wYWdlfHx8fGVufDB8fHx8&amp;ixlib=rb-1.2.1&amp;auto=format&amp;fit=crop&amp;w=1000&amp;q=80\" alt=\"Direct Lending is a type of financing for small and medium-sized enterprises.\" width=\"514\" height=\"342\" title=\"\"><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%C2%BFComo_funciona_el_Direct_Lending\"><\/span><br><strong>How does Direct Lending work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>On the one hand, the <strong>borrowers <\/strong>are usually<a href=\"https:\/\/techma.bakertilly.es\/en\/how-to\/webinar-crecer-adquiriendo-empresas-una-alternativa-para-las-pymes\/\" data-type=\"URL\" data-id=\"https:\/\/techma.bakertilly.es\/diccionario\/webinar-crecer-adquiriendo-empresas-una-alternativa-para-las-pymes\/\"> small or medium-sized enterprises (SMEs)<\/a> rather than large listed companies or large corporations that already, for example, have access to corporate bond issuance.<\/p>\n\n\n\n<p>On the other hand, the <strong>lenders <\/strong>However, they will only consider loans above \u20ac5M, so direct lending is mainly focused on mid-market borrowers.<br><br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%C2%BFPor_que_el_DL_es_mas_flexible_y_agil_que_la_Financiacion_Bancaria\"><\/span><strong>Why is DL more flexible and agile than Bank Finance?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Bank Finance requires more regulation compared to Direct Lending, which results in greater rigidity and limitations for the former, making it in many cases less attractive. <br><br><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full is-resized\"><img decoding=\"async\" src=\"https:\/\/techma.bakertilly.es\/wp-content\/uploads\/2021\/09\/bank-debt-direct-lending-1.png\" alt=\"Structure of a balance sheet using Direct Lending and Bank Financing\" class=\"wp-image-52392\" width=\"596\" height=\"259\" title=\"\" srcset=\"https:\/\/techma.bakertilly.es\/wp-content\/uploads\/2021\/09\/bank-debt-direct-lending-1.png 1020w, https:\/\/techma.bakertilly.es\/wp-content\/uploads\/2021\/09\/bank-debt-direct-lending-1-300x131.png 300w, https:\/\/techma.bakertilly.es\/wp-content\/uploads\/2021\/09\/bank-debt-direct-lending-1-768x334.png 768w, https:\/\/techma.bakertilly.es\/wp-content\/uploads\/2021\/09\/bank-debt-direct-lending-1-600x261.png 600w\" sizes=\"(max-width: 596px) 100vw, 596px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Principales_ventajas_del_Direct_Lending\"><\/span><br><strong>Main advantages of Direct Lending<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><span style=\"color: #000000;\">The advantages of Direct Lending include:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><span style=\"color: #000000;\">Flexibility to adapt to the needs<\/span><\/li><li><span style=\"color: #000000;\">The borrower's flow generation<\/span><\/li><li>L<span style=\"color: #000000;\">Guarantees are clearly less demanding for companies than syndicated loans or securities.<\/span><\/li><li><span style=\"color: #000000;\">The amortisation period is longer and generally in bullet form (100% at the end of the period).<\/span><\/li><li><span style=\"color: #000000;\">They are not subject to banking regulations, which allows them to obtain the necessary financing more quickly.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"color: #000000;\">It should be borne in mind that the cost of direct lending is usually higher than bank lending. In addition, it is sometimes necessary to carry out an audit in order to receive the capital and, on occasions, the funds tend to condition the financing to<em> <\/em>hold a seat on the Board of Directors in the borrowing company<\/span>. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Diferencias_con_el_Capital_Riesgo\"><\/span><br><strong>Differences with Venture Capital<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>No dilution of shareholding<\/li><li>Does not affect the management of the company<\/li><li>Does not oblige you to a joint exit after the investment process<\/li><li>Simpler and streamlined negotiation process<\/li><li>Lower cost. Equity is always the most expensive financing<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Usos_del_Direct_Lending\"><\/span><br><strong>Uses of Direct Lending<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>To develop an acquisition-based growth plan<\/li><li>To finance investments in high fixed assets (new plants, etc.)<\/li><li>For the financed buy-back of minority shareholders<\/li><li>Extraordinary dividend payment<\/li><li>Refinancing of a short and highly atomised banking pool<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fondos_Direct_Lending_en_Espana\"><\/span><br><strong>Direct Lending Funds in Spain<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><span style=\"color: #000000;\">In 2014 several funds such as <span style=\"text-decoration: underline;\"><a href=\"http:\/\/www.bravocapital.es\/\" target=\"_blank\" rel=\"noopener\">Bravo capital<\/a>, <a href=\"http:\/\/tressisgestion.com\/productos\/FIL\/iberian.php\" target=\"_blank\" rel=\"noopener\">Iberian Private Debt <\/a><\/span>or Aria Capital started operating under the direct lending modality in our country.<\/span><\/p>\n\n\n\n<p><span style=\"color: #000000;\">Bravo Capital was founded in November 2013 by U.S. funds<span style=\"text-decoration: underline;\"> <a href=\"http:\/\/www.avenuecapital.com\/\" target=\"_blank\" rel=\"noopener\">Avenue Capital<\/a><\/span> and <span style=\"text-decoration: underline;\"><a href=\"http:\/\/www.jzpartners.com\/\" target=\"_blank\" rel=\"noopener\">JZ Capital<\/a>,<\/span> and in January 2014 it began operating in our country.<\/span><br><span style=\"color: #000000;\">Its objective is to complement banking by granting direct lending loans. Bravo closed 2014 with more than 300 million euros in financed operations.<\/span><\/p>\n\n\n\n<p><span style=\"color: #000000;\">&nbsp;One of the first funds created in our country, it has as its protagonists the American <span style=\"text-decoration: underline;\"><a href=\"http:\/\/www.muzinich.com\/\" target=\"_blank\" rel=\"noopener\">Muzinich<\/a><\/span>a manager specialised in alternative financing and<span style=\"text-decoration: underline;\"><a href=\"http:\/\/www.arcanogroup.com\/\" target=\"_blank\" rel=\"noopener\"> Arcanum<\/a><strong>, <\/strong><\/span>300 million to provide loans of up to seven years to 15 to 25 companies in all sectors.<\/span><\/p>\n\n\n\n<p><span style=\"color: #000000;\">The fund called<span style=\"text-decoration: underline;\"><a href=\"http:\/\/tressisgestion.com\/productos\/FIL\/iberian.php\" target=\"_blank\" rel=\"noopener\"> Iberian Private Debt<\/a> <\/span>invests in loans and private credit issues of healthy Spanish and Portuguese companies and is aimed at institutional investors,&nbsp;<em>Family Office and Private Banking<\/em>.<\/span><\/p>\n\n\n\n<p><span style=\"color: #000000;\">\"The vehicle is designed to support companies in their growth, internationalisation and export activity,\" says Diego Gutierrez.<\/span><\/p>\n\n\n\n<p><span style=\"color: #000000;\"><span style=\"text-decoration: underline;\"><a href=\"https:\/\/www.r4.com\/\" target=\"_blank\" rel=\"noopener\">Renta 4 Bank <\/a><\/span>and AFI, created in June 2014 a direct lending fund managed by Aria Capital, the joint venture created by Renta 4 Banco and Afi, whose participants are national and international institutional investors. The volume of the fund is \u20ac200M. They lend to companies with between \u20ac50m and \u20ac500m in annual turnover in any sector, excluding only finance, real estate and emerging technologies.<\/span><\/p>\n\n\n\n<p><span style=\"color: #000000;\">Bankinter did not want to be left behind and in 2014 decided to promote direct lending to companies by joining forces with the fund manager Magnetar Capital. Subsequently, in view of its success, it signed another agreement with Mutua Madrile\u00f1a.<\/span><\/p>","protected":false},"author":4,"featured_media":0,"template":"","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":""},"tags":[313,1956],"paso-howto":[2275],"sectores":[],"class_list":["post-42682","diccionario","type-diccionario","status-publish","hentry","tag-direct-lending","tag-financiacion-bancaria","paso-howto-financiacion-alternativa-contenido"],"acf":[],"_links":{"self":[{"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/diccionario\/42682","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/diccionario"}],"about":[{"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/types\/diccionario"}],"author":[{"embeddable":true,"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/users\/4"}],"wp:attachment":[{"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/media?parent=42682"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/tags?post=42682"},{"taxonomy":"paso-howto","embeddable":true,"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/paso-howto?post=42682"},{"taxonomy":"sectores","embeddable":true,"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/sectores?post=42682"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}