Peer-led deals carry both an advantage (access and context) and a risk (compressed diligence). Treat them the same as any other deal, with one extra step.
Underwrite the deal first
Run the standard checks: business quality, market, price, capital structure, sponsor, exit path. The relationship does not change the underwriting.
Then underwrite the relationship
Ask: would I be comfortable sharing a critical assessment of this deal with the member at our next forum meeting? If the answer is no, the conflict outweighs the opportunity.
Use third-party diligence
Independent quality-of-earnings and legal diligence let you raise hard questions without it feeling personal.
Communicate clearly
If you pass, do so directly and with specific reasons. Vague non-answers damage the relationship more than a clear no.
If you are evaluating a transaction in this space and want a candid second look, Solender Capital is happy to compare notes. Reach out through our contact page and share what you are working on.