The team seeks to reduce credit risk through an ongoing evaluation of portfolio exposure at each step of the process:

Deal Review

• Initial deal screening based on targets such as minimum tranche size and EBITDA
• Focus is on asset coverage, free cash flow, defendable market position and quality of management
• Deal details and diligence are integrated into our systems

Investment Memo/Due Diligence

• The due diligence process culminates in an investment memo handed out to the entire analyst team prior to the credit committee meeting. It provides in-depth business, structural and portfolio analysis

Financial Model

• Prepared based on our proprietary research and open source data

Credit Meeting

• A meeting to consider the opportunity based on the internally developed intelligence, identify red flags and formulate a trading and risk management plan

Credit Monitoring Process

• Layers of predefined daily, weekly, quarterly and ongoing monitoring and analysis

Our proprietary Credit Portfolio Management System integrates credit analytics with active portfolio management and compliance in a single application. This allows our portfolio managers and analysts to work together more efficiently.