At a Glance

• The portfolio company deal is a timing decision wearing a credit decision’s clothing. Term set against asset life rather than expected hold produces paper that gets paid off early, at a change of control, by someone else.
• The credit is rarely the problem. The exit is. Assignment consent, change-of-control language, and prepayment mechanics decide whether the relationship survives the sale — and all three are negotiated at closing or not at all.
• The platform is the audition; the add-ons are the business. A buy-and-build sponsor will acquire four to eight companies under one platform, each arriving with a fleet that needs re-papering.
• The person who approves the structure was not on the call. Sponsor-side operating partners and the CFO network behind them set the template long before the platform CFO signs anything.

The Clock Nobody Puts in the Credit Memo