A participation is a share in a loan held under a participation agreement with a lead lender. A participant can exit by selling its interest to a buyer, subject to the agreement's transfer and consent terms. The participation agreement — especially voting, consent, and waterfall provisions — drives what a buyer needs to know.
Beyond the underlying credit, a participation buyer reviews the participation agreement: the lead/participant roles, voting and consent rights, the cash-flow waterfall, and any restrictions on transfer. Provide the agreement alongside the loan tape.
Funds and banks exit participations to manage concentration, free capital, or step back from a credit they no longer wish to follow. A direct buyer purchases the interest all-cash, subject to the agreement's terms. Standing Bid Capital is a direct principal buyer of CRE loans, discounted payoffs, and REO — $250K–$25M, all-cash, no re-trade, confidential. Request a confidential review.
Yes â subject to the participation agreement's transfer and consent provisions, a participant can sell its interest to a buyer who assumes that position.
The underlying loan tape plus the participation agreement and any inter-creditor terms, so the buyer understands its rights and the waterfall.
Standing Bid Capital evaluates CRE loan participations alongside whole loans, $250Kâ$25M. Request a confidential review.