A unitranche rolls a senior loan and a junior loan into one, with one agreement and one blended rate. Behind it, lenders may still divide the risk among themselves.
What the film says
In private credit, one loan can do the job of two. It's called a unitranche. Normally a borrower takes a senior loan, and a riskier junior loan on top. This rolls them into one. One agreement. One blended rate. So why do investors care? Behind that one rate, lenders may split the risk among themselves. One loan to the borrower. Not always one risk to the lenders.
In the glossary: Unitranche
A simple example with round numbers, not advice. Terms vary by fund.
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