A group of private equity sponsors which join together to make a larger investment. Club deals are often seen in large private-company buyouts and going private transactions. The primary objectives of a club deal are to:

In the context of syndicated bank loans, a club deal is a smaller loan (usually less than $150 million) that is pre-marketed to a select group (usually around 3 -5) relationship lenders, lenders with closer ties to the borrower or its sponsor. In a club deal, each lender generally gets a full share, based on its proportionate share of the total commitment, of the fees from the deal.

For more on club deals, see Practice Notes, Buyouts: Overview and Interim Consortium Agreements in Private Equity Buyouts.