Coverage ramp-up for a Private Credit Team
Client: A Leading Asset Management Firm
Objective
The client wanted research support for the Private Debt team, which had coverage of 70+ companies.
CRISIL's Solution
- CRISIL GR&RS assigned two credit analysts to build and maintain detailed company models with historical data.
- The CRISIL team provided key support in pre-investment credit evaluation and due diligence, preparing detailed company/industry reports analyzing the key risks.
- Prepared presentations/investment recommendation for new issuances and supported maintenance of coverage for existing credits.
- Built detailed credit models with adjustments for off-balance sheet items.
- Updated the models with reported actual monthly/quarterly numbers and compared with company budgets – analyzed reasons for differences.
- Prepared short updates on monthly/quarterly results comparing the actual performance vs budgeted results.
- Models were forecast with different scenarios – Base Case/Management Case/Worst Case.
- Prepared detailed capital structure tables evaluating leverage at various levels: senior/secured loans/unsecured/PIK/mezzanine debt.
- Discussed cases with PMs before investment committee meetings, highlighting the key credit strengths & weaknesses.
Client Impact
- CRISIL GR&RS team worked as an extended arm of the client, supporting in all the tasks across the value chain.
- Client expanded coverage from 40 to 70 credits per analyst and also increased the team size.
Questions