As part of a relatively young asset class which finds itself very much in favour when it comes to investor commitments, private debt general partner groups can find themselves growing assets under management extremely rapidly.
While this brings great opportunity, it also involves challenges – not least in the area of loan administration. Amid such favourable market conditions, it is essential that managers ensure their loan administration function is capable of supporting not just current activities but expected future growth as well.
One of the trends currently is for managers to offer more complex, customised loans as a key selling point versus competitors. But can the back office take the strain?
A survey organised by the Alternative Credit Council (ACC) and BNP Paribas – CLICK HERE TO VOTE – aims to understand more about the current loan administration infrastructure that firms have in place and also identify some of the common challenges faced.
The results of the survey will allow firms to benchmark themselves against their peers and perhaps help them to improve their administrative functions. These results will be reported by PDI once the votes have been collected and conclusions drawn.
“Loan administration is a topic we increasingly discuss with our members,” said Jiri Krol, deputy chief executive officer and global head of government affairs at the Alternative Investment Management Association, which the ACC is part of.
“This survey will help us understand some of the more practical challenges that they are facing in this important area of their business,” he added.