private equity loan rates made practical

We prefer transparent, side-by-side views: private credit rates, unitranche loan rates, mezzanine financing rates, and private equity interest rates compared on total cost and flexibility.

Rates shift with leverage, cash-flow durability, and SOFR; we typically see high-single to low-teens, though context can nudge either way. Last quarter, during a plant-floor walkthrough, an 11% unitranche indication settled near 10.4% after competing PE lending terms.

Pros and cons

• Pros: speed, structuring flexibility, partnership mindset, less dilution.
• Cons: higher spreads and fees, tighter reporting, prepay costs.

How to compare

1. Compare all-in APR, OID, and recurring fees.
2. Ask about call protection, floors, and covenants.
3. Model downside cash flow and sweep impacts; use as a sponsor financing rates comparison.