April 27, 2023
Automation is critical to modernizing the loan market
Automation is critical to modernizing the loan market April 27, 2023 | Steve Sulecki | SS&C With institutional investors allocating to debt funds in growing numbers, it’s not surprising private …

Read more

Automation is critical to modernizing the loan market

April 27, 2023 | Steve Sulecki | SS&C

With institutional investors allocating to debt funds in growing numbers, it’s not surprising private equity and hedge fund managers are interested in diversifying into this sector. However, they are navigating significant operational and accounting challenges. 

Despite the growth and sophistication of the loan market, it is still largely paper-based and dependent on manual processes. Loans are arguably the most complex asset class for accounting and reporting. Loan facility documentation is often unique to each lender and the structures, terms and covenants are often highly tailored to the borrower. With little standardization and few opportunities for automation, firms find it challenging to achieve processing efficiency and speed to make the business scalable and profitable.

Portfolio accounting systems built for traditional equity or fixed-income investments cannot handle the many moving parts associated with a bank or private debt. Firms often resort to spreadsheet-based workarounds to calculate the valuations of their loan holdings and allocate payments to investors. This manual process is inefficient, time-consuming and increases the risk of errors. Even firms tracking their loans in investment management systems struggle to gather the data points required to formulate positions on trade dates. While these details may be available in the credit agreement, it entails parsing large amounts of information to extract the correct data elements required by the system.  

≡ Continue Reading

Recent

RIA Email Marketing That Misses

RIA Email Marketing That Misses

Every email should serve a purpose in the journey toward building a relationship, not just securing a transaction. 
Boost Advisor Engagement on LinkedIn

Boost Advisor Engagement on LinkedIn

With a thoughtful strategy, this platform can become a real asset for connecting with advisors, building visibility, and supporting your sales efforts in a way that’s both compliant and effective.
Why Your Pitch Deck Fails

Why Your Pitch Deck Fails

The pitch deck’s role is to spark interest and build confidence—not to close the deal outright. Leave space for curiosity.

Most Popular

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update 10-3-2023 Blue Vault wishes to acknowledge and apologize for the delay in publishing some Q2 2023 NTR Individual Performance Pages (IPPs) as well as the full review. We recently added additional reporting metrics to our IPPs, and that, combined with coverage of all share classes and some additional…
Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update 9-25-2023 Blue Vault has published the Q2 2023 Nontraded BDC Industry Review as well as Individual Performance Report and Limited Operations pages for the following offerings (newly published pages in bold font): Nontraded REITS American Healthcare REIT Q2 2023 Apollo Realty Income Solutions Q2 2023 (limited operations) Ares…

Explore

Blue Vault Logo
Don’t miss alts news
and educational events

Subscribe Now