10 Considerations for Choosing a Hybrid Credit Fund Platform

As hybrid funds become more common, we continue to see the lines blur between hedge funds and private equity funds as typical closed-end private equity structures venture more into liquid assets. This is especially true in the wake of the COVID-19 pandemic, when certain sectors fell out of favor and others saw increased attention, leading investors to shift strategies from one asset class to another. As we discussed in our "Insurers Turn to Private Markets to Maximize Returns" post, insurers are increasingly turning to private marketing investing in response to inflation and interest rate fluctuations.

There are unique reporting and accounting challenges associated with these new strategies, with lenders needing the ability to adapt to changing regulatory requirements and scale with the ebb and flow of loan applications. Private market investing comes with unique and complex nested fund structures that can be difficult to navigate for those who are newer to the space. Additionally, different jurisdictions have different requirements. These challenges require flexible technology to deal with data collection across multiple disparate systems.

There are a few loan management platforms available, but how do you choose the solution that’s right for you? We’ve identified 10 things you should know as you research your options. Look for a solution that offers:

1. Straight-through processing for complete, accurate and timely information.
2. User-friendly experiences for borrowers and investors.
3. A tailored approach for hybrid credit funds.
4. Outsourcing for enhanced scalability and flexibility.
5. Automation for high-volume manual tasks.
6. Robust creditworthiness review.
7. Unique features for specific requirements like Schedule B or ALM reporting.
8. ESG reporting.
9. Ability to respond to loan modifications, restructurings and sales.
10. An established relationship with an experienced and globally recognized partner.

SS&C’s Precision LM addresses all ten of these critical considerations. Our state-of-the-art loan management platform, backed by industry expertise and knowledge, integrates seamlessly into your environment and manages the complete lifecycle of virtually any type of loan.

SS&C recently helped a global investment manager with more than $14 billion in AUM and 15+ funds across hedge, private equity and hybrid funds. SS&C delivered full fund administration and middle and back-office services, loan administration and support for bespoke processes.

To learn more about how to choose the right loan management platform for your needs, download our "2023 Lender’s Guide for Private Markets: 10 Things to Know" eBook.