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Is Your Firm Built To Scale With The Boom In Middle Market Direct Lending?

 

As of October 2017, Middle Market issuance was at $122 billion YTD, this is up from $97 billion in 2016 for the same time period (Thomson Reuters Leveraged Loan Monthly – October 2017); an increase of over 25%. The continued surge in the Direct Lending marketplace has new and existing firms jockeying for position as leaders in this niche lending space.  In order to have staying power, firms must be able to scale with growth and adapt to an ever-changing environment. This fact, coupled with the migration of capital from pension funds has successful firms adopting procedures and workflows that ensure optimal operating environments to continue to attract institutional investors.

Workflow and data management are integral components to any operating environment. These become amplified for Direct Lenders. Key components of the Direct Lending industry are:

  • Workflow processes need to be repeatable and consistent,
  • Data flow must be streamlined and efficient,  
  • Information must be readily available:
  • on any borrower,
  • for any loan,
  • at any point in time,
  • Compliance and controls around the workflow and the data ensure:
  • that loan covenants are abided by,
  • statistical information can be calculated and analyzed.

 

While human resources play an important factor in creating and managing processes, technology can also play a critical role.  The amount of data that must be consumed and analyzed can be daunting. It is important to work with vendors that understand the industry, can implement best practices and support your business as it scales. To learn more about ClearStructure and why Sentry PM was chosen as Best Direct Lending Solution for 2017 by CV Magazine please contact us.