ACC loan administration survey: Looking under the hood of private credit

By Jiri Krol, Deputy CEO, Global Head of Government Affairs, AIMA / ACC

Published: 21 September 2017

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Private credit is still a relatively new sector, and as such not all of its constituent parts have been fully examined. To date research on the sector has focused on helping investors understand its size (for example, assets under management, dry powder, and fund launches) and the characteristics which underpin its continued growth. This growth, however, can present private credit managers with challenges. In particular, managers must make sure that their loan administration functions are able to support both current activities and future growth.

The Alternative Credit Council (ACC), in conjunction with BNP Paribas, is now doing its part to help, with an upcoming paper on loan administration.

Loan administration is an integral facet of the private credit sector. An effective loan administration function saves private credit firms both time and money, allowing them to focus on core business efforts of finding new opportunities that will maximise returns. Poor loan administration, on the other hand, diverts staff time and can harm a firm’s relationship with its borrowers.

Currently, private credit managers are often left to discover best practice on their own, through trial and error. Funds have few sources of guidance when confronted with challenges ranging from whether to outsource and how to integrate software and IT systems to the need to reconcile automation with the flexible approach that is a hallmark of the sector.

The ACC recognises these challenges; our paper will help inform industry and investor perceptions regarding best practice in loan administration. In order to do this we want to know what members of the industry are doing now, and what they think the most important facets of this crucial business function are. To that end, we encourage members of the industry to share their views here, in a quick, three minute survey. 

We look forward to hearing from you.