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The institution organising a financing transaction and coordinating its structure and participating lenders or investors.
The arranger works on structure, pricing, documentation and distribution of the financing. Its mandate may require it to underwrite a commitment or only use best efforts to obtain participants; those carry different obligations. After completion, an agent may handle continuing administration. The arranger can retain part of the loan, but the amount retained is distinct from the total facility it helped organise.
Imagine a borrower seeking a US$60 million loan. A lead arranger negotiates terms and recruits two other lenders. The final shares are US$20 million each. It arranged the overall transaction but retains only one-third of the funded exposure. If its initial mandate was best efforts, that label alone would not establish an obligation to provide any unplaced portion.
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