Your Strategic Goals
To achieve your strategic goals, we've addressed the challenges private debt and credit managers face by combining expertise, custom services, and technology.
1. Your data challenge
Private debt fund managers frequently invest in a diverse array of portfolio companies. Ensuring effective monitoring of portfolios, interest coverage, and covenants necessitates the aggregation of company-specific KPIs and financial data from various sources, often presented in challenging formats such as PDFs and spreadsheets. This process also encompasses the complexities of monitoring covenants, managing multiple interest/principal notices, and overseeing collateral.
The private debt investment landscape fosters a particularly intimate relationship between you as the lender and the borrower. Maintaining this positive engagement is paramount for successful outcomes and sustainable partnerships
Our solution
IQ-EQ processes and digitises this data using technology platforms such as Allvue and our Snowflake-based data platform, supported by IQ-EQ Cosmos, transforms and organises information allowing easy access and analysis. We can also follow-up on any outstanding data due from the borrower on a frequent basis and this protects the close relationship between you as lender and the borrower.
2. Your complexity challenge
Interest calculations can vary in complexity depending on the LPA agreement and also depending on how the investment has been structured there may also be PIKs or convertible positions. Managers must consider compounding frequency, accrual methods, and any additional fees or charges affecting interest calculations.
Our solution
IQ-EQ has an exclusive strategic partnership with Allvue, enabling our clients to use our Investment Accounting platform to automate loan administration and interest calculation processes across the entire investment lifecycle and all bespoke financial instruments in the debt and credit space. Our loan centres of excellence are resourced with technical loan analysts who are very experienced in understanding and reviewing all legal documents and how a loan should perform.
3. Your service challenge
In a challenging fundraising environment, it's crucial to satisfy existing LPs. They increasingly want faster access to information and enhanced transparency, especially concerning the leverage levels of portfolio companies. Moreover, ad-hoc data requests have become frequent, necessitating private debt managers to be operationally prepared to meet these demands.
Our solution
IQ-EQ has an exclusive strategic partnership with Allvue, enabling our clients to use our Investment Accounting platform to automate loan administration and interest calculation processes across the entire investment lifecycle and all bespoke financial instruments in the debt and credit space. We also provide a comprehensive platform that enables the digitization of loan documents and notices, streamlining the entire process for enhanced efficiency and accessibility. Our loan centres of excellence are resourced with technical loan analysts who are very experienced in understanding and reviewing all legal documents and how a loan should perform.
4. Your resourcing challenges
Rising inflation and interest rates coupled with management fee compression are leading asset managers to re-evaluate their operating models and consider outsourcing. Recruitment and retention of talent present significant challenges and even large firms are finding it difficult to keep up with rapid technological advancements.
Our solution
IQ-EQ specialises in delivering outsourced solutions that prioritise cost efficiency, safeguarding margins, and mitigating risks for our clients. With over 20 years’ of expertise in servicing alternative asset managers, particularly those in debt/credit, we not only share industry best practices but also aim to provide cost-effective alternatives that may surpass independent managerial efforts. Our strategically established centers of excellence for loan servicing in key markets ensure scalability, adapting to fluctuations in a client's debt lifecycle and investment patterns.
5. Enable Decision-making
Debt managers need to be able to determine and forecast accurately their cash position to monitor liquidity. The totality of the exposure to certain markets, sectors and geographies and risk ratings must be monitored to ensure that the portfolio is always in line with the concentration limits and compliance obligations.
Our solution
Our experienced loan operations team at IQ-EQ can assist in cash flow modeling and forecasting positions. Through our partnership with Allvue, the Allvue technology may also be utilised to assist with future modeling of potential investments that may be acquired and the impact on the existing book of this purchase. Our teams work with your custody bank to ensure that all breaks are investigated and explored and appropriately remedied in a timely manner. We can also utilise our Cosmos technology to allow more detailed mining on the asset information allowing for more informed decision-making.