Meridian Credit Partners Strictly Private & Confidential
Section 05
Origination
Engine
Three sourcing channels feed one disciplined funnel. We see wide, close narrow, and take only the loans that clear a unanimous vote. Selectivity is the product.
~540
Screened / Year
18–24
Closed / Year
~4%
Close Rate
Zero
Fund I Losses
Three channels
One funnel
Sourcing Channels

Three channels feed one disciplined funnel.

Channel 01
Direct
Non-sponsor owners and management teams sourced through the partners' 18–20 year networks. Widest spreads, least competition, deals no auction ever touches.
Channel 02
Sponsor coverage
Lower-middle-market private equity firms that need a fast, reliable first-lien partner across their portfolio companies. Repeat flow from a known counterparty.
Channel 03
Intermediary network
Bank cast-offs, boutique advisors, and BDC club deals. Credit the crowded upper market never sees, routed to us because we close.
Multiple channels mean we are never dependent on one source, one sponsor, or one auction. Volume comes from breadth, quality comes from choice.
3 channels
One filtered funnel
Meridian Credit Partners · Fund II02 / 06
Funnel & Selectivity

We say no to 96% of what we see.

~540
Screened / yr
~110
IC-reviewed
18–24
Closed / yr
~4%
Close rate
Selectivity is the product. Discipline at the top of the funnel, not heroics in a workout, is the single biggest reason Fund I carried a full cycle with zero realized losses.
~96%
Declined by design
Meridian Credit Partners · Fund II03 / 06
Underwriting & IC Process

Five gates. One unanimous vote.

Step 1
Screen
Fit to mandate: size, sector, sponsorship, first-lien collateral. Most fall out here.
Step 2
Diligence
Quality of earnings, customer and cohort analysis, management, downside drivers.
Step 3
Structure
Leverage, covenants, call protection, security package. Modeled to downside and recovery.
Step 4
IC vote
Written memo to a three-partner committee. Unanimous, or it does not fund.
Step 5
Close & monitor
Fund, then track covenants and cash quarterly. Workouts partner owns any drift.
Every deal is modeled to what we recover if we are wrong, not just what we earn if we are right. Approval requires a unanimous vote of the Investment Committee.
Unanimous
IC approval required
Meridian Credit Partners · Fund II04 / 06
Live Pipeline

Four deals in diligence, $61M committed.

BorrowerSectorFacilitySizeSpreadType
HVAC distribution roll-upSpecialty distributionFirst-lien, 3.8x$18MSOFR + 600Sponsor
Healthcare staffing platformHealthcare servicesUnitranche$12MSOFR + 650Sponsor
Specialty chemicals manufacturerNiche manufacturingFirst-lien$22MSOFR + 550Sponsor
Family-owned logistics firmLogistics & transportFirst-lien$9MSOFR + 700Non-sponsor
Total, four dealsFour sectors~90% first-lien$61MBlended S+6053 sp / 1 non-sp
These four sit at the bottom of a broader funnel of roughly $540M screened this year. Spreads range from SOFR + 550 on hard-asset collateral to SOFR + 700 on the non-sponsor deal, where our direct sourcing edge earns the wider price.
Meridian Credit Partners · Fund II05 / 06
Why It Compounds

The network sources it. Discipline protects it.

Breadth at the top. Three channels put ~540 opportunities a year in front of us, so we never reach for a marginal loan to stay busy.
Choice in the middle. A ~4% close rate means every funded loan beat 24 others for the capital. That is where the zero-loss record is made.
Control at the close. Lender-friendly documents and a unanimous IC keep the discipline consistent as the fund scales.
Same team, more capital. Fund II runs the identical engine that took Fund I through a full cycle without a realized loss.
The compounding logic
More capital does not mean lower standards. It means more shots at the same disciplined filter that produced Fund I's zero-loss record.
Fund I: $210M across 24 loans, zero realized losses, 10.8% net IRR to date. The sourcing engine, not luck, is what makes that repeatable at Fund II scale.
Meridian Credit Partners · Fund II06 / 06