Single-Lender Credit

A single-lender facility is funded by one lender rather than a pool. The lender provides the full amount, and the exposure is to that one borrower on negotiated terms. There is no diversification across a book and no sharing of losses with other lenders — the lender holds the credit directly, and the outcome of that specific facility is the outcome of that specific relationship.

This shape suits institutions that want a specific counterparty, bespoke terms, or a bilateral relationship that isn't offered publicly. The delegate's role is underwriting and servicing rather than pooling — the credit process, the MLA, and the monitoring are the same as in a pooled facility, and the capital structure is one-to-one rather than one-to-many. The protection stack carries over as well: the delegate still posts first-loss capital against a single-lender facility, on the same principle as in a pool — the delegate's own capital absorbs losses ahead of the lender's principal, so choosing a bilateral structure over a pooled one changes the diversification profile, not the underlying protection a lender is relying on.