Private credit portfolio monitoring that shows each loan’s full history of concessions, so stress is seen before non-accrual
Stressed loans flagged a quarter or more before non-accrual.
See one case, screen by screen ↓Software that watches every loan in a credit fund between closing and repayment: financials, covenants, interest, marks and changes to terms. Private Credit Portfolio Monitoring makes each loan’s history of concessions — waivers, resets, looser add-backs, interest in kind and extensions — the thing it tracks, so a borrower leaning on the fund shows up before the loan goes on non-accrual.
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A sponsor-backed borrower under pressure rarely defaults. It asks. A covenant waiver one quarter, a reset the next with wider EBITDA add-backs, then a toggle to pay part of its interest in kind, then one more year on the maturity. Each request goes to the deal team on its own, each looks reasonable on the day, and the loan stays on accrual at its old rating.
Nobody holds the whole history in one place. The portfolio report shows today’s terms, not the path. After a reset the borrower passes the new test while, on the definition at closing, it has failed for quarters; PIK built into a loan at closing and PIK added by amendment sit in one number; and the mark drifts down half a point a quarter. The stress is recognised when the loan goes on non-accrual — too late to negotiate from strength.
Estimated split for one fund’s quarterly review, by hand and with the solution — in line with the published 2–3 weeks to 2–3 days.
Six specialist agents rebuild every loan's concession history and score its stress; the portfolio manager proposes and the CIO decides.
Corvane Senior Lending Fund II holds 58 loans, $1.62B par. It is Monday 12 October, Q3 has closed, and the watchlist and valuation committee meets Thursday. Brookhollow Provisions has just asked for Amendment No. 4. Here is the week, screen by screen, in the working solution.
Elena opens the concession timeline: one lane per borrower over eight quarters, every waiver, reset, looser add-back, switch to interest in kind and extension a marker at its date. Brookhollow Provisions, $97.5M, still rated 3, shows four concessions in nine months — and “7 in 16 months if agreed” in dashes where the open request sits. The 06:00 run already rescored 58 loans; Pinecrest Modular crossed the watch line at 62.
“The same shape once before. Ostrander Dental drew four concessions in nine months, then went on non-accrual in June 2026.”
Five loans sit above the watch line of 60, $302.3M par. Seven fail their original covenant on the definition at closing. Brookhollow ranks first among the accruing loans at 81, up 7, with 29% of this quarter’s interest paid in kind under an amendment, and 2.7% headroom on the reset test against −28.5% on the original. Its status: “Amendment asked”.
Brookhollow Provisions Holdings, LLC: private-label snacks and baked goods, sponsor Tamsin Ridge Partners, a $150.0M unitranche where Corvane is agent and holds $97.45M (64%), SOFR + 625, maturing 14 Mar 2029. The review will read the credit agreement, 4 amendments, a waiver letter, 8 interest notices, 7 compliance certificates, 7 quarterly marks, lender call notes and the new request — 41 documents.
The lanes fill as each agent works. The amendment reader finds 8 events: 4 concessions, 1 consent, 3 asked. The interest and PIK tracker ties $720,000 and $725,400 capitalised to Amendment 3 — added, not designed at closing. The mark and signal watcher compares the 93.0 mark with peers at 86.5 and finds the revolver 92% drawn in December, a certificate 12 days late and a declined equity cure.
Covenant recomputer: “reported 6.57× vs 6.75× · original definition 7.39× vs 5.75× · failing six quarters”.
Concessions 24, leverage on the original covenant 16, interest in kind added by amendment 14, liquidity of $10.2M — about four months of fixed charges — 10, sponsor support 7, mark against peers 6, late reporting 4. Each driver links to its source. Beside it, the terms at closing and today: SOFR + 575 all cash became SOFR + 625 with 300 bp payable in kind; the 5.75× test became 6.75×; add-backs went from 20% to 35%.
The scorer ranks and explains. It never puts a loan on the watchlist or non-accrual.
From Mark Delaney, CFO, and Rachel Voss of Tamsin Ridge Partners, reply due Friday 16 October: one more year to 14 Mar 2030, all interest in kind for Q4 2026 and Q1 2027 — about $5.11M added to the loan — and no leverage test until Q3 2027. Laid on the history it makes seven concessions in sixteen months and moves the score from 81 to 88.
Six counter-terms, each set against what was asked: the extension only once $10.0M of new sponsor equity is in, interest in kind capped at 300 bp, a 7.25× reset with an $8.0M minimum liquidity test, a 50 bp fee of $487,250, monthly financials and a 13-week cash flow. The pro forma puts par at $98.92M in March 2027 instead of $102.56M, and the score at 76 instead of 88. Ostrander took all interest in kind and an extension without new equity, and went on non-accrual; Ferncastle reset with $6.0M of new equity and its score fell from 58 to 52.
“The agents propose; you decide. Corvane holds 64% of the loan, so your answer is the required lenders’ answer.”
Every Q3 interest period is tied to the administrative agent’s notice — 58 of 58. $3,560,400 was paid in kind, 8.6% of $41.3M interest income. $2,110,400 of it, across six loans, was added by amendment — 5.1% of income, against 0.8% two years ago; $1,450,000 on three loans was designed at closing and is tracked, not scored. Ostrander’s $702,000 is accrued but not recognised. The table exports for the 10-Q schedule.
Brookhollow to the watchlist with a rating change from 3 to 4; Harrowgate Logistics to the watchlist, extension only with amortisation; Pinecrest Modular to the watchlist with monthly reporting. Each reason carries its source. Elena signs with the meaning “Proposed as portfolio manager”, and the proposals go to Margaret Hale, the Chief Investment Officer, who approves rating changes and the watchlist.
The Q3 stress note runs to five sections: the portfolio at a glance, the loans above the watch line, the Brookhollow pattern, interest in kind designed and added, and the decisions asked for. Ten sources are cited: eight from Brookhollow’s loan file, from the waiver letter of 18 June 2025 to the Amendment No. 4 request, and two published studies.
“Ratings and non-accrual are the committee’s decision. Marks stay with the valuation team; this note sends them the evidence only.”
The same loan, seen by the five people who carry it to the committee — what their quarter looked like, and what it looks like now.
Six specialist agents rebuild every loan's concession history and score its stress; the portfolio manager proposes and the CIO decides.
Reads the credit agreement and every amendment, waiver, consent and forbearance letter, and classifies each change: waiver, covenant reset, add-back change, interest in kind added, maturity extension, covenant holiday, margin change or consent.
Ties every interest period to the administrative agent’s notice — cash, in kind, toggles — and separates interest in kind designed at closing from interest in kind added by amendment.
Recomputes each financial covenant as reported, then on the definition, level and add-back cap at closing, and reports headroom on both.
Compares marks with peers and watches revolver use, late reporting, sponsor support and news.
Scores every loan 0–100 from seven drivers, explains each driver with its source and ranks the fund against the watch line.
Drafts watchlist proposals, counter-terms to amendment requests from the fund’s precedents, and the quarterly stress note, every figure cited.
Proposes and signs; the CIO approves ratings. The agents propose; a named person decides.
Ask about any loan, concession or score — or tell it what to draft. Every answer cites its document.
Why is Brookhollow ranked first?
Its score of 81 is built from its history, not its terms today: 4 concessions in nine months (24 points), 7.39× on the original 5.75× test (16), 29% of this quarter’s interest paid in kind under an amendment (14), and liquidity, sponsor, mark and reporting (27). It is still rated 3 because each concession was approved on its own.
What would Amendment 4 add to the history?
Three more concessions: one more year to March 2030, all interest in kind for Q4 2026 and Q1 2027, and no leverage test until Q3 2027. That is seven concessions in sixteen months and about $5.11M added to the loan. The closest precedent, Ostrander Dental, went on non-accrual the quarter after a similar amendment.
Which loans pay interest in kind because of an amendment?
Six, $2.11M capitalised in Q3: Brookhollow Provisions $725,400, Pinecrest Modular $316,000, Tidewell Marine $300,000, Quarrytown Building $295,000, Valecrest Home $264,000 and Calderwood Pet Nutrition $210,000. Three more pay in kind by design and are not scored.
Draft the committee note on Brookhollow
Done — section 3 of the Q3 stress note. It sets out the four concessions in order, the original-covenant test at 7.39×, the declined equity cure and what Amendment 4 would add, and ends with the proposal: watchlist, rating 3 → 4 and the counter-terms. Nothing goes to the committee until you sign.
13 screens from the working solution, on its sample data. Pick one to see it large.
How every loan is scored and when it is raised are settings, versioned and on the audit trail.
| Setting | Default | Choose from |
|---|---|---|
| Watch line — proposed for the watchlist at or above | 60 | 40 to 80, in steps of 5 |
| Escalation line — the CIO is told the same day | 75 | 70 · 75 · 80 |
| Look-back for concessions | 8 quarters | 8 quarters · 12 quarters · Life of the loan |
| Weights: concessions · original covenant · in kind added · liquidity · sponsor · mark vs peers · reporting | 30 · 20 · 17 · 12 · 9 · 7 · 5 | 25 · 25 · 15 · 15 · 10 · 5 · 5, or 35 · 15 · 20 · 10 · 10 · 5 · 5 |
| Bunching means | 3 or more in 12 months | 2 or more in 6 months · 4 or more in 18 months |
| Test on the original definition too | On | On · Off |
| Late reporting — a compliance certificate later than | 10 days | 5 · 10 · 15 days |
| Risk rating changes and non-accrual approved by | Margaret Hale, CIO | Margaret Hale, CIO · Daniel Achebe, Head of Portfolio Management |
Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.
“demo” = seen in the working solution, on its sample fund data · “estimated” = a back-test on a fund’s own non-accrual history, and our split of the review days · “typical” = published figures: Fitch Ratings via Bloomberg Law (May 2026: record 6% private credit default rate, more than half via deferral or PIK); Boston Fed CPP 26-6 (BDC loans with PIK about 6% → nearly 10%); Avante Capital, vendor-published (review prep 2–3 weeks → 2–3 days). People, funds, borrowers and sponsors named on this page are fictional — characters and sample data in the working solution.
Software that watches every loan in a credit fund between closing and repayment: financials, covenants, interest, marks and changes to terms. Private Credit Portfolio Monitoring makes each loan’s history of concessions — waivers, resets, looser add-backs, interest in kind and extensions — the thing it tracks, so a borrower leaning on the fund shows up before the loan goes on non-accrual.
The interest and PIK tracker ties every interest period to the administrative agent’s notice and PIK election, records cash, the amount capitalised and the principal after, and marks each in-kind amount as designed at closing or added by amendment. Only interest in kind added by amendment counts toward the stress score, and the table exports for the 10-Q schedule.
Yes. The covenant recomputer tests each covenant as reported and again at its closing level and add-back cap, and reports headroom on both. In the working solution a borrower reporting 6.57× against a reset test of 6.75× is at 7.39× against 5.75× on the original definition — failing for six quarters.
From seven drivers over a look-back of eight quarters by default: concessions, the original-covenant test, interest in kind added by amendment, liquidity, sponsor support, the mark against peers and reporting. Each driver shows its points and links to its source. The weights, the watch line and the escalation line are settings.
No. The agents read, score and draft. The portfolio manager signs watchlist proposals and amendment replies, the committee chair approves rating changes and non-accrual, and marks stay with the valuation team, which receives the evidence only.
Yes. It lays the request on the loan’s history, builds a pro forma of par, interest in kind and the score as asked and under counter-terms, and drafts counter-terms using the fund’s own precedents. The portfolio manager keeps or drops each term and signs the reply.
Credit agreements, amendments, waiver and consent letters, the agent’s interest notices and PIK elections, compliance certificates and financial statements, valuation marks and memos, lender call notes, and sponsor and news updates. New documents are read and every loan rescored each night.
The Agentic Solution Engine builds and deploys it from your requirements and documents — your credit agreements, watchlist and rating policy, committee note template and a sample of loan files — and it goes live once every quality gate has passed. We will walk you through it on your own loans first.
First-pass screen in minutes, not half a day, every deal read.
1-min demoPrivate Credit ValuationDocumented support for every mark, ready for committee and auditor.
1-min demoInvestor Reporting AutomationInvestor questions answered in a day, every figure traced to the books.
1-min demoWe’ll run Private Credit Portfolio Monitoring on a sample of your own loan files.