Leading Private Credit Firm Transforms Portfolio Management

We initiated our collaboration with a proof of concept (POC) phase in which the client provided several assets for evaluation. This initial phase was essential for showcasing our capabilities and understanding how our services could address their needs. Our experience with similar projects for private credit firms allowed us to exceed their expectations during the POC stage, delivering results we were confident would be well-received by the client.

During the POC stage, the team organized onboarding discussions with each portfolio manager to better understand the client's requirements. These conversations focused on the current processes and helped identify specific challenges, particularly regarding the nuanced treatment of line items related to cash flow generation for certain assets.

The team gathered detailed information on the methodologies used by various portfolio managers and noted the differences in their approaches to managing line items, which was essential for aligning strategies. From this information, they developed a standardized methodology that served as a general guideline for all asset updates. The client approved this framework, ensuring that everyone was aligned moving forward. However, they acknowledged that some assets required customized solutions. For these exceptional cases, the team created specific "Cheat Sheets" that outlined the particular treatments that deviated from the general guidelines.

After successfully executing the initial stage, the client implemented a phased rollout approach. They identified 20 assets to onboard in the first quarter and planned to include all 100 assets over the next four quarters eventually. As the phased rollout began, the team provided live overnight support to address any client requests, further enhancing the partnership promptly.

As our partnership progressed to the gradual onboarding of a total of 100 assets over the subsequent year, our solutions involved executing several key workstreams:

• The first was the development of a dynamic financial tracker that enabled ongoing monitoring of each asset’s performance, ensuring timely and accurate financial reporting. Our team provided portfolio reporting support, allowing the private credit team to make timely, informed decisions through synthesized data dashboards that deliver quick summary snapshots of financial metrics and earnings.
• Next, we assisted in updating the existing valuation templates used to assess the underlying value and risk associated with the assets, providing insightful analyses of their performance.
• Additionally, we monitored and maintained a comprehensive portfolio review template that facilitates regular reviews and systematic assessments. This allows for adjustments based on asset performance and market conditions.

Our team took full ownership of the entire portfolio monitoring process. We expanded our services to include ad-hoc support in areas such as lender analysis and tracking the metrics of all deals submitted to the investment committee. These additional workstreams have enhanced our impact by streamlining operations, providing quicker insights, and ultimately driving success for our clients.