How much can I borrow on a unitranche?

Typically 2-4× last-twelve-months EBITDA, with total debt usually kept below about 50% of total capitalisation. The multiple depends on cash conversion, sector, and growth, subject to diligence.

Unitranche vs senior bank debt: what's the difference?

Senior bank debt is cheaper but more conservative, slower, and usually amortising. A unitranche provides more leverage in one facility at a higher blended rate, with bullet repayment and faster, more certain execution.

How does buyout finance work?

In a buyout, debt typically funds a large share of the purchase price, secured on the target's cash flows. Facilities run 5-7 years with EBITDA leverage and cash-cover covenants, and repayments are largely back-ended so the business can invest through the hold period.

Cashflow financing

Unitranche & Buyout Finance

A unitranche is a single debt facility that blends senior and junior debt into one tranche with one blended rate, provided by a single lender or club. It is the structure of choice for buyouts and acquisitions of profitable, cash-generative businesses.

Instead of layering separate senior and mezzanine facilities, a unitranche gives the borrower one loan, one set of documents, and one counterparty. That speeds execution and gives certainty of funding to a deal timetable. Repayments are low and largely back-ended, with standardised LMA-style documentation making facilities easy to scale and syndicate over time, for example through M&A.

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Indicative ticket

$20M-$200M

Quantum: Typically 2-4× LTM EBITDA; debt below ~50% of total capitalisation
Term: 5-7 years
Repayment: Low capital repayments, largely back-ended or bullet at maturity
Covenants: EBITDA leverage and cash flow cover
Security: Senior secured over all assets
Pricing: Arrangement fee, interest, early repayment fee

Indicative only and subject to diligence. Actual terms depend on your business and the market.

Business profile

Who unitranche & buyout finance is for

$10M+ revenues; medium to large businesses in a steady or growing market
Sustainable business model, long-term customers, good margins
Strong history of profitability and cash flow ($2M+ EBITDA)
Sponsor-backed or founder-owned

Debt purpose

What the capital is for

Buyouts (LBO / MBO), including in support of a PE bid
Acquisitions and buy-and-build
Recapitalisations
Refinancing an existing debt stack

Benefits

Why borrowers choose it

One facility, one counterparty: faster execution and certainty of funds
More leverage than traditional bank debt
Low, largely back-ended repayments preserve cash
Standardised LMA docs make facilities easy to scale and syndicate

When not to use it

An honest word of caution

!Pre-profit companies without sustainable EBITDA
!New or smaller businesses with unpredictable financials
!Where cheap senior bank debt suffices and speed is not critical

How it compares

Versus separate senior + mezzanine, unitranche trades a slightly higher blended rate for speed, simplicity, and certainty. Versus growth debt, it requires genuine EBITDA and is sized on a leverage multiple.

Terms, criteria, and sizing shown are indicative, not exhaustive, and subject to further diligence on the company and its assets.