All private credit lender portfolios have their “problem children,” and more often than not, a lender will end up in a situation where a tapped-out sponsor has walked away, and the lender must assume ownership of the business. Once taking up the mantle of the borrower, lenders are often initially faced with a few paths forward.

When choosing to exit through a sale or refinance a business, lender-owners must consider a number of variables throughout the process. Jay Jacquin reminds lenders that these processes are intrinsically different from non-lender-owned transactions.