Origination of loans directly by nonbank lenders (BDCs, direct-lending funds, separately managed accounts) to middle-market borrowers — bypassing the bank syndication channel. Distinguished from BSL by bilateral pricing negotiation, illiquid secondary market, maintenance covenants, smaller borrower size ($5M–$250M EBITDA), and a 150–250 bps illiquidity-and-size premium over comparable BSLs.