Direct Lending

Our Direct Lending strategy invests in directly originated first and second lien secured loans, including unitranche investments.

In certain instances, we also make subordinated debt investments, which may include an associated equity component such as warrants, preferred stock or other similar securities and direct equity co-investments.

Direct Lending investments may be made through First Eagle Alternative Capital BDC, Inc. (NASDAQ: FCRD), a publicly traded business development company, and/or other private fund vehicles.

Learn more about FCRD.


Our direct lending investment teams are organized by industry verticals. This enables us to identify risks early in our underwriting, provide value to sponsors in their diligence and execute transactions with a high level of conviction.


Investment Style

  • Lower Middle Market Direct Lending

Investment Strategy

  • Focus on first lien and second lien secured loans, including unitranche investments
  • Primarily private equity sponsor-backed transactions

Types of Transactions

  • Change of control, acquisitions, refinancing, recapitalization, etc

Geographic Focus

  • Primarily United States

Target Company Size

  • EBITDA over $5 million, with an emphasis on $10-40 million

Target Transaction Size

  • Total Enterprise Value of $75-250 million

Target Hold Size

  • Up to $125M, including $10-35M in First Eagle Alternative Capital BDC, Inc. along with other investment vehicles


At First Eagle Alternative Credit*, we take a hands-on, creative approach to investment sourcing, underwriting and portfolio management.

With offices in Boston, Chicago, Dallas, Los Angeles and New York, we have a deep and diverse relationship network. Each of our offices maintains an integrated deal team (i.e., origination, underwriting and portfolio management), allowing us to be closer to smaller, regional sponsors who often prefer deeper relationships with local lenders.

Relationships with our investors are equally as important to us. Building trusted relationships is a hallmark of how we conduct our business and this starts with the shareholder. Being good stewards of shareholder capital and consistently providing an attractive risk-adjusted return are at the core of this.


An experienced management team.

Our leadership has worked together extensively, investing through multiple business and credit cycles across the entire capital structure. Each individual brings a distinct investment perspective and skill-set.

Expertise from investing billions in assets since inception of the private debt asset class

We have the institutional knowledge and operational infrastructure required to thrive in the middle market. Our comprehensive underwriting methodology and monitoring processes have been implemented across all five regional offices.

A proactive sourcing platform.

Our relationships include private equity sponsors, investment bankers, middle market senior lenders, commercial bankers, lawyers, accountants and business brokers. With our direct lending investment teams located in five offices across the country, we build relationships on a local and regional basis.

Our affiliation with the Tradable Credit team.

We work closely with our Tradable Credit team. As such, we have access to the resources of both groups, enhancing our transaction sourcing capabilities while benefiting from consultation on specific industry issues, trends and other complementary matters.