Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.
Discerning profit from peril in private credit markets
04 September 2019
In the first half of 2019, at least $10.7 billion was raised by
private debt fund managers, making private credit one of the
fastest growing markets driven by expansion in permanent financing
vehicles like business development companies (BDCs), direct lending
and large syndications led by asset managers. Demand is spurred by
reduced bank lending, the search for higher yields and the
diversification private credit brings to a wide range of investors
including insurance companies, mutual funds, family offices and
even retail investors.
Growth in the market, competition for deals and the increasing
diversity of types of firms participating creates need for more
integrated, real time tools for credit assessment and portfolio
monitoring. Especially during volatile markets and the threat of a
turn in the credit cycle, the most nimble and best-informed
managers are most likely to benefit from the ability to discern
profit from peril.
The ability to create a holistic real-time view of credit
opportunities and holdings was a driver of our acquisition of
Ipreo, which owned iLEVEL, a year ago. Combining the back and
middle office expertise of WSO
(Wall Street Office) with the credit and portfolio monitoring
capabilities of iLEVEL and the
private market pricing-, reference- and position data we offer
enables us to deliver accurate, up-to-date views of positions and
credit fundamentals to the front office, including portfolio
managers, credit analysts and CIOs.
In developing this front office solution, we worked closely with
private credit managers like Main Street Capital Corporation to
ensure credit performance, cash and position data are organized to
present maximum insight to the fund manager. The result of this
industry collaboration and system integration between IHS Markit
and iLEVEL is a unified dashboard experience combining data from
the front, middle and back office into a powerful portfolio
monitoring tool.
"The integration of IHS Markit assets in the private credit
space and the initiative their teams have shown to understand our
business solves several significant data challenges and helps us
focus more effort on portfolio management and returns for our
investors," says Sammy Cashiola, managing director of Main Street
Capital Corporation. "The ability to view dashboards on my iPhone
and iPad that combine credit models, position data and valuations
allows me to keep a pulse on our portfolios anytime, anywhere."
The dashboards simulated here show how credit metrics like
leverage ratios, concentration snapshots, and position data come
together and enable exposure and risk analytics. Unifying credit
and position data makes it easier for portfolio managers and deal
teams to understand how new opportunities affect portfolios and the
risk tolerance set by the firm.
This integration is just the beginning. With iLEVEL, our deep
datasets and other resources, we have the ability to transform how
firms execute deals and manage portfolios in private credit. Our
vision is to bring together client relationship management, credit
analysis, pipeline monitoring, deal execution, position tracking,
portfolio monitoring and investor reporting in one seamless
experience.
IHS Markit provides industry-leading data, software and technology platforms and managed services to tackle some of the most difficult challenges in financial markets. We help our customers better understand complicated markets, reduce risk, operate more efficiently and comply with financial regulation.