Davis Polk partner and Liability Management & Special Opportunities practice head Brian Resnick was quoted in Debtwire on third party lenders charging ‘deal away’ fees in LME deals.

The article notes that break fees, commitment fees, and expense reimbursement are starting to become more common in LME deals but are limited by ongoing competition between third party funds. 

“We’re seeing third party lenders not have negotiating leverage for compensation,” Brian explained. “They’re sometimes able to get a modest work fee, but mostly there’s enough competition, even for the particularly distressed situations, that they just don’t really have the leverage.”

He added that moderate work fees, perhaps in the few hundred-thousand-dollar range, are sometimes discussed but they’re “not real compensation” because they’re meant to cover some expenses.

“Getting paid to lose, third-party lenders cash in on LME ‘deal away’ proposals” Debtwire (July 24, 2025) (subscription required)

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