Wide circulation prices a mid-market facility down

In private credit the lenders hold different mandates and different views of the same security, so a facility shown to twenty funds is repriced by the least interested of them.

Bank syndication tolerated broad distribution because participants priced off a common rating. That logic does not transfer. A credit fund declining a structure is not a neutral event: the decline circulates, and the next lender approached is now the second or third to see it. The fact of the circulation becomes a data point about the borrower, independent of the credit.

The working approach list for a structured mid-market facility is usually four to eight names, selected on whether the lender's mandate covers this structure at this ticket, and whether it will clear investment committee rather than agree at term sheet and withdraw at documentation.

Selecting that list requires knowing who is currently deploying, at what size, and against what security. It is the part of the process least visible to a borrower and the part that most determines the terms they end up with.