Lloyds Banking Group and Oaktree Capital Management are to fund buyouts and refinancing for middle-market companies as part of a new partnership.

The bank said that its structured debt finance team will partner with Oaktree’s European private debt platform, which has deployed more than $3.9 billion over the past two decades, to provide companies with a debt solution for new buyouts and refinancing with term debt, acquisition, and working capital facilities.

The move will see the companies provide a maximum combined loan of £175 million to sponsor-backed firms with an EBITDA of between £10 million £75 million.

James Ranger, managing director and head of sponsors and structured finance at Lloyds Bank, said that the move will provide a "market-leading one-stop solution" for mid-market companies looking for financing options.

"As a result, sponsor clients will be able to finance larger transactions without needing to bring on board additional lenders, which will make deals easier to conclude and reduce uncertainty for all concerned," continued Ranger.

Nael Khatoun, managing director and portfolio manager within Oaktree’s European private debt strategy said that sponsor-backed companies in the UK remain a significant long-term opportunity.

"We believe Oaktree’s Partnership with Lloyds Bank will be a compelling proposition to meet this demand, providing borrowers with certainty of execution and an expedited transaction process," he said.

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