Private debt is an umbrella term that refers to debt products that are financed by non-bank institutions. Unlike publicly listed corporate bonds, private debt products are usually illiquid and not issued or traded on public markets. Private debt (also known as private credit) includes direct lending, mezzanine finance and special situations.
If you’re an established business looking for growth finance or a buyout you might want to consider either direct lending or mezzanine finance (a hybrid of debt and equity).
In a ‘special situation’, i.e. if your business is going through a significant change (or you are facing bankruptcy) you may welcome an approach from a special situations fund.