"We’re already seeing a payoff for the hard work from the team. Due to their automation tool, our portfolio review pack now takes 30 minutes for us to compile, versus the 2-4 hours last quarter!"
The Challenge
The Private Credit Division of a global alternative investment manager, with over $200 billion in assets under management across private equity, secondary markets, and credit, sought external support to optimize and enhance its portfolio monitoring processes. The division focuses on directing investments towards companies within the sub-investment grade corporate credit markets in Europe and North America, emphasizing proactive risk management to protect against potential losses.
Having successfully collaborated with Evalueserve on previous projects, the firm's private equity team recommended our services to the private credit team. Based on this referral, we crafted a customized proposal highlighting our expertise in private credit support. After a detailed evaluation, the managing director engaged us in a pilot project to assess our capabilities and potential value.
Our Solution
During the pilot phase, we demonstrated the value of our portfolio monitoring expertise and uncovered additional challenges faced by the Private Credit Division, particularly in leveraging technology and automation. Key issues included:
- Resource Constraints: The team experienced bottlenecks, especially during peak financial reporting and portfolio reviews, which resulted in delays and limited their ability to seize investment opportunities promptly.
- Data Management Challenges: Handling large volumes of data related to deal analysis, financial modeling, and portfolio monitoring proved challenging. The team needed improved data organization and consolidation to extract actionable insights effectively.
- Technology Limitations: The firm’s technology infrastructure needed advanced analytics and system integration, which impeded data-driven decision-making and slowed operational efficiency.
- Deal Execution Efficiency: Manual and fragmented processes for deal execution, document management, and communication slowed operations, leading to delays and missed opportunities.
To address these challenges, we assembled a specialized team with expertise in:
- Private markets and private credit to assist with the client’s day-to-day operations.
- Technical development for implementing automation and technology accelerators.
- Project management to maintain the highest standards of quality and ensure smooth communication.
Based on our assessment, we recommended implementing our tech-enhanced managed services model, which combines subject matter expertise with advanced technology for faster and more accurate outcomes.
We formed a cross-functional team of four subject matter experts and four technical developers, offering a blend of onshore and offshore support. By aligning our resources with the client’s needs, including offshore teams based in India, we were able to integrate our solutions seamlessly into the client’s infrastructure. Our focus was on portfolio monitoring, dashboarding, reporting, and document management—each optimized through automation and technology to ensure efficiency and minimize errors.
Our tech-enhanced managed services model addressed key operational areas: dashboarding and reporting, portfolio monitoring, and document management.
To boost reporting within the Private Credit Division, we standardized deal-level data and created PowerBI dashboards for real-time portfolio insights, valuation updates, and performance analysis. We developed an integrated fund allocation model to detect non-compliance and improved capital allocation memos by modeling deal terms and asset characteristics.
We collaborated with client stakeholders to streamline the transition to standardized templates and updated historical financials, significantly enhancing portfolio monitoring. Our team took over asset monitoring, analyzing cash flow, liquidity, and other critical metrics.
We assembled a team of developers and domain experts to manage fragmented data from multiple Excel files. They worked to standardize and validate data input models, creating automation tools that consolidated data into a single, coherent file.
The document management process was significantly enhanced. The team now oversees the sourcing of documents from third parties, carefully tracks deadlines, and addresses non-compliance issues, resulting in a more streamlined and efficient workflow. Additionally, a repository for previously submitted documents was created, improving transparency and facilitating better traceability.
Business Impact
Our solutions significantly improved the Private Credit Division's operational efficiency by automating manual processes and addressing resource limitations. The key benefits included:
- Increased Productivity: Automation reduced time spent on portfolio monitoring, saving substantial hours in data curation, and improving overall efficiency.
- Better Decision-Making: Access to enhanced data insights empowered the team to make well-informed investment decisions, improving deal flow and portfolio diversification.
- Improved Risk Management: Implementing robust risk management frameworks allowed the team to proactively identify and mitigate portfolio risks, strengthening performance and boosting investor confidence.
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Portfolio review acceleration
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Enhanced data management
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Dedicated expert team
Talk to One of Our Experts
Get in touch today to find out about how Evalueserve can help you improve your processes, making you better, faster and more efficient.
Overview & Impact
Our tech-enhanced services model improved portfolio monitoring and reporting for the Private Credit Division of a leading alternative investment manager.