Oxane Partners

In private credit lending, managing borrower behavior is just as important as choosing the right borrower in the first place. Financial covenants—rules in the loan agreement—act as guardrails to keep the borrower’s financial health in check. But as portfolios grow and borrower data multiplies, manually monitoring all this can get overwhelming. This is where AI for Private Credit is making a difference. By automating how lenders monitor performance, track red flags, and stay compliant, AI brings both speed and consistency to covenant compliance. But can AI really handle something as sensitive as covenant monitoring? The short answer is yes—and here’s how it works in a practical, easy-to-understand way. Understanding Covenant Compliance in Private Credit Let’s start with the basics. In private credit deals, covenants define key financial expectations that the borrower must meet. Common examples include: Maintaining a certain debt service coverage ratio (DSCR) Staying below a maximum lev...

  Why leverage oversight isn’t just a back-office task—but a front-line strategy for modern private credit funds. In today’s private credit environment, growth isn’t just about doing more deals. It’s about managing how you finance those deals—especially when leverage is in play. Direct lending funds often use leverage facilities to scale faster, improve return metrics, and compete in crowded markets. But as these funds grow, so does the complexity of managing leverage. One wrong move, and what once amplified returns can quickly become a threat to liquidity or regulatory standing. This is where Direct Lending Leverage Facility Management becomes crucial. Done right, it transforms leverage from a basic tool into a powerful, risk-aware growth strategy. Let’s explore what this looks like in the real world—and why it matters. Understanding Leverage in Direct Lending Imagine you're running a business and have a credit card with a high limit. If you use it wisely—to manage cash flow or ...