Club deal (also used in German; more rarely joint operation)

A middle ground between conventional two-sided financing according to the corporate customer/bank scheme and a syndicated loan. In most cases, two to a maximum of five banks, usually led by the house bank, participate in a larger financing project of a company. One of the participating institutions – usually the principal bank – assumes the role of arranger, and in particular the structuring and legal design of the loan, the preparation of a repayment schedule, the valuation of the collateral and the administration of the contract after it has been signed. This is advantageous for both the club – i.e. the participating institutions – and the borrower and saves costs (commitment to provide project finance by a small number of banks that split up between themselves the tasks of structuring and managing the finance, e.g. who should act as agent, documentation bank, financial modelling bank). – Two or more funds, also internationally active, jointly (consortium; associated) finance a major investment by a company or a state. – See Arranger, Bought Deal, Loan, Third Phase Financing, European Master Agreement, Family and Friends Capital, Incubator, Investment, Syndicated Loan, Credit, Private Equity Financing, Financial Planning, Qard al-Hasan, Seed Capital, Self-Financing, Sweat Equity, Loss Sharing Scheme.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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