This article was originally published in 2024 Evercore’s State of Market.

In the evolving market for software debt financing, understanding what makes an attractive borrower is crucial for lenders and software companies seeking capital. As private credit firms step into the shoes of traditional lenders, they seek specific attributes in software companies that not only help to ensure loan repayment, but also align with the growth trajectory of the enterprise software sector.

Thoma Bravo Partner Oliver Thym shares insights on enterprise software’s momentum in private credit direct lending and outlines five characteristics and KPIs for understanding software borrowers from a lender’s perspective.

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