Shadow accounting (direct lending, CLOs, hedge funds, liquidity) support to a Europe-based credit and private debt manager

CLIENT CHALLENGES

One of the largest Europe-headquartered credit and private debt managers, with global expertise in senior secured loans, high-yield bonds, private credit, structured credit, special situations and multi-strategy credit
Client was looking for help with liquidity management, cash projections, preparation of cash ladders, co-ordination with MO to clear aged cash breaks using in-house and third-party applications
Client was looking for help with cash reconciliation, asset rollovers, income and capital distribution and invoice processing on the WSO system
Client was looking for help with fund control activities such as invoice verification and cross-checking daily, weekly, semi-monthly/monthly NAVs from different sources for various loan funds and comparison with FA reports
Client was looking for help with monthly and quarterly European and US payment reports and the provision of investment risk support for the compliance teams

Validating errors in overnight imports of data from broker to client system, providing a heads-up to team about the type of error and resolving the issue with the IT team
Started performing daily top-day activity in parallel with the Liquidity Management team for EU and US portfolios by positing daily FX and MTM adjustments
Conducting bi-directional cash reconciliation between the broker system and the WSO system to ensure all transactions are recorded on the WSO system and cash breaks are tracked
Preparing daily, weekly, semi-monthly and monthly cash reconciliation files for direct lending funds
Processing invoices for categories such as tax, fees, expenses and charges
Logging the invoices with signatures and sending them for liquidity checks; after confirmation from the Liquidity Team, sending them to FA for payment
Preparing monthly and quarterly payment reports for US and European CLOs
Collateral principal amount tie-out, data point reconciliation (ratings, defaults, haircuts) and validation

Real-time support to the client
Within a shorter period of time, we provided historical data and other data required
Cost efficiency
On hand to help with ad hoc tasks so client could meet deadlines
Expected to launch a new fund/s
A number of reports can be generated on a real-time basis for audit purposes
40%+ cost savings effected by adding bandwidth

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