Skip to main content

In the ever-evolving world of private credit, staying ahead can feel like a marathon. But with Covenant Review’s Private Credit Product, anyone—from asset managers and law firms to CLO managers and originators—can gain the insights and strategic foresight needed to navigate this complex landscape with confidence.

Understanding the Challenges Global private credit investments are booming, with the market size projected to grow from about $1.5 trillion at the start of 2024 to $2.8 trillion by 2028. In this dynamic environment, understanding and managing covenants are essential for mitigating risks and seizing opportunities. Investors are increasingly drawn to private credit for its potential to deliver higher returns, making it a crucial area to master.

Our Solution: Covenant Review’s Private Credit Product

In-Depth Risk Management We dive deep into covenant structures, offering detailed analyses that help you understand the protections and restrictions within loan documentation. This allows you to accurately assess risks and make informed investment decisions that align with your strategic goals.

Enhanced Transparency Despite the market’s growth, private credit loans remain opaque due to their confidential nature. Our proprietary blend of Documentation Scores, Private Credit TrendLines Reports, and Custom Portfolio Analyses sheds light on over 200 distinct data points in credit agreements. This transparency lets you compare your transactions against broader market benchmarks.

Optimized Deal Structures Stay ahead of the curve with our research on trends and innovations in private credit deals, including private credit ETFs and major bank partnerships. For example, our analysis of the Pluralsight transaction highlighted potential risks, while assuaging alarm bells in the market about the impending threat of lender-on-lender violence in private credit. You can read more about this in our article here. This knowledge helps you optimize deal structures, negotiate better terms, and secure favorable covenants.

Market Entry and Expansion Strategies Whether you’re looking to enter or expand in the private credit market, our actionable insights on risk profiles and loan documentation can help you identify new opportunities and diversify your portfolio. The private credit market’s ability to provide liquidity during volatile periods, particularly since the onset of Covid-19, has been a significant advantage.

Investor Confidence and Relations Building and maintaining investor confidence is crucial. Our detailed reports equip you with the knowledge to effectively communicate safeguards and risk mitigations, fostering stronger investor relationships and attracting more capital. The close relationship between lenders and borrowers in private credit deals often leads to higher returns and better recovery rates in case of defaults.

Be Proactive, Not Reactive In a competitive environment, being proactive rather than reactive gives investors a significant edge. With Covenant Review, you can stay ahead of market trends and changes, ensuring that you’re always in the best position to capitalize on emerging opportunities and mitigate risks.

Key Features:

  • Personal Attention of Highly Trained Legal Professionals: Each credit agreement or amendment is reviewed by one of our experienced loan analysts, who are available to answer any questions.
  • In-Depth Individual Deal Reports: Gain deep insights into more than 200 provisions specific to each transaction.
  • Proprietary Documentation Scores: Over 100 data points are scored on a 1-5 basis to provide a comprehensive overview of each transaction.
  • Trend Reports: Access our exclusive set of benchmarks, sourced from thousands of credit agreements and amendment reviews.
  • Custom Portfolio Analysis: Benchmark your portfolio against our extensive database.

In the fast-paced private credit market, strategic use of covenants is key to managing risks, ensuring compliance, and achieving superior returns. Covenant Review’s specialized research provides the insights needed to enhance your investment strategies and maintain a competitive edge.

Stay ahead in the Private Credit Market with Covenant Review – your trusted partner in covenant intelligence and analysis.

Contact us to learn more.
Ian K. Walker, J.D. – Head of Legal Innovation at Covenant Review
Jessica Reiss, J.D. – Head of U.S. Loans Research at Covenant Review