[Whitepaper] Investing in Private Debt

Attractive investment returns are possible through private lending, but preparation, proper loan structuring and ongoing monitoring are essential to protecting your invested capital.  This White Paper offers a three-step process:

  1. Get to know the Issuer’s management well and conduct a thorough credit analysis and due diligence review of the Issuer
  2. Structure the investment, as defined in the investment’s Summary Terms and Conditions or (Term Sheet,) by seeking as senior a position in the Issuer’s capital structure (or Capital Stack) as possible and by securing liens on the Issuer’s collateral using Uniform Commercial Code filings to limit your exposure in the event of a default
  3. Conduct ongoing monitoring of the Issuer’s business performance and its compliance with loan covenants, such as loan-to-value and fixed-charge coverage ratios.

Read the full white paper - 'Investing in Private Debt - 3 Keys to Mitigating Your Risk'



*This article is re-posted with permission from Carofin. The original article can be found here: https://carofin.com/knowledge-base/whitepaper/investing-in-private-debt/

About Carofin

Carofin is the modern iteration of the practice which CFS has honed over decades. Its purpose is to leverage technology (via connectivity, data, and process) to empower our community of investors to deploy their capital far more efficiently than ever before. Through Carofin we connect our community of engaged investors with worthy companies, using technology to create vast efficiencies while further empowering the human element of our business.