Case Study: Modernizing Loan Operations with Sirvatus

Synopsis

A leading direct lender specializing in structured capital solutions for technology companies sought to improve the efficiency and accuracy of their loan operations. The firm relied on a manual, Excel-based process for loan administration and agency workflows, requiring collaboration between its investment team, operations group, and an external fund administrator.

As the firm grew and deployed more capital, this approach became increasingly challenging. Manual spreadsheets led to data inconsistencies, operational bottlenecks, and stretched internal resources.

By implementing Sirvatus, the firm was able to adopt a modern, intuitive single source of truth for deal terms and data, simplify and streamline loan operations and reporting, and reduce the operational burden of servicing the portfolio by 75%.

Operational Friction, Limited Scalability

The firm initially took a manual approach to overseeing loan operations and asset servicing, opting to execute this function in-house across a small team of investment and operations professionals with input from a third-party fund administrator.

With an Excel-based framework, this required a significant amount of collaboration across the firm to:

• Implement deal terms accurately across multiple spreadsheets for post-close operations.
• Manually maintain and update loan data to reflect amendments, delayed draws, and payment-in-kind (PIK) components to ensure payment calculation and position accuracy.
• Prepare and distribute monthly borrower notices, collect and reconcile payments.
• Produce ad-hoc and recurring reports from inconsistent and sometimes conflicting data sources.

As the deal volume and complexity increased, so did the inefficiencies. The firm experienced challenges like siloed communication, data discrepancies, and the overuse of limited internal resources. These issues prompted a search for a purpose-built platform to serve as a centralized system of record and enhance throughput for loan agency activity, particularly for complex features like amendments, PIKs, and delayed draw functionality.

Sirvatus provides us with real-time savings to redeploy into other operational areas and has eliminated monthly processes to ensure loan positions are accurate and easily accessible to operations and deal teams alike. We are able to analyze historical loan return attribution and run projections that are valuable to running our business and interacting with investors. As a further benefit, lender-borrower interactions are standardized and streamlined.

— Chief Operating Officer, Direct Lending Firm

Achieving 75% Operational Efficiency Gains with Sirvatus

Sirvatus, a platform built specifically for direct lenders, became the foundation of this firm's modern loan operations. Acting as the single source of truth for loan data and operational activity, Sirvatus enabled the firm to:

• Reduce time spent on monthly payment-related tasks by 75%.
• Seamlessly implement complex events like amendments, partial paydowns, and PIK rate changes.
• Consolidate all reporting and analytics through one reliable data system.
• Move towards 100% on-time borrower compliance and payment collection using built-in task tracking features.
• Reallocate time and staff resources to higher-value activities, such as deal origination, portfolio management, and investor relations.