Alterest instantly modernized the fund’s technology infrastructure to establish swift origination, portfolio monitoring and automation on non-standard borrower portfolios.

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About

Fast-growing London-based private debt fund focused on prime and near-prime credit opportunities in UK deployed Alterest to obtain high-quality data from various types of lenders, manage drawdowns requests alongside senior co-investors, standardise and obtain cross-lender default/performance curves.

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Challenges

Deploying a large portfolio in the private lending sector is operationally exhaustive due to the non-standard nature of portfolio data and analytics. Origination can be slow delaying capital deployment and portfolio management can be cumbersome consuming critical personnel resources for non-core activities.

With their rapidly growing lender portfolio, efficiently incorporating loan data into risk management and reporting functions became a high priority. Centralising drawdown management to streamline workflows was required as the portfolio grew.

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Solution

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Managed Database and Centralized Drawdowns for Instant Digitization

Smart mapping features enabled both direct, automated loan data delivery as well as ad-hoc uploads significantly reducing the time required to process data uploads compared to Excel-based methods. Drawdowns against real-time computed borrowing limits and senior funder interactions are now done on a collaborative cloud interface.

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Lossless Cross-Portfolio Historical Analytics for Efficient Scaling

Alterest has enabled full-historical, no-loss analytics on all loan tapes received. Cross-portfolio view with the ability to even compare performance curves across lending platforms has provided unprecedented insight at a low cost. The fund is set up efficiently to originate deals and scale to multi-billion dollar deployments without having to worry about scaling the data infrastructure.

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Normalised Templates for Maturity of Operations

Exhaustive templates for both standard and esoteric asset classes available on the Alterest platform enable the fund to quickly access new lending opportunities and beat its competitors in providing quicker and better offers to borrowers. Templates also help the fund as the borrowers grow and scale to public markets and use securitizations.

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Minimised Headcount in Non-Core Activities

Dedicated quant support from Alterest enables the fund to not hire full-time data and quantitative analysts and instead focus on the core business of investing in private markets.

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White Glove Support

Alterest’s dedicated customer support augments the platform’s rich capabilities with a domain-specific support team which proactively collaborates with the fund to expand the applicability of the platform within its business and ensure customer success. The Alterest support team implemented custom default, loss and return curves to help digitize the fund’s experience which was previously captured on fragile spreadsheets.

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Key Improvements

• 80+ hours saved per month through digitized workflows
• Critical spreadsheets replaced
• Data centralization via managed data service
• Eliminated key-man risks