Alternative Investments - Loan Management System

Rapidly growing commercial loan origination, acquisition and servicing business of multi-billion dollar, multi-strategy hedge fund was being managed by multiple asset managers, analysts, compliance, operations and executive personnel via Excel spreadsheets, word documents and various Web subscriptions. Effort was very labor intensive, time consuming and error prone. Operational risk ranged from multiple data entry points by multiple parties to inability to readily generate compliance reports. Lack of scalability of spreadsheet system was negatively impacting portfolio growth. Since no software product existed to effectively handle the requirements and demands of client personnel, a custom software solution was desired and the client turned to NorthPoint to create it.

After gathering the business and technical requirements, NorthPoint consultants used their subject and technical expertise, while working closely with various client personnel, to design, create and implement a custom, browser-based, real-time and scalable Loan Management System software application using Java technology. This unique solution provides client users with a variety of functions and features including:

• single point of accurate data entry
• user-friendly interface for daily analysis and portfolio monitoring
• real-time, accurate and reliable risk and position management
• integration of current and historical Moody's and S&P ratings
• robust filtering and querying of related elements (sector, industry & region)
• a facility for storing, linking and sharing research analysis of historical, current and proposed transactions
• integration of real-time interest rate data
• ability to undertake sophisticated pre-trade and "what if" scenario analysis
• auto generation of interest rate change notification and invoices for issuers
• extensive compliance reporting and stress test capabilities
• standard and custom report generation (i.e., top 40 issuers, watch list & commission payments)
• tracking of legal balance versus actual balance in default situations, including principal and interest payments and write-offs
• all reports generated in Excel format

The new LMS software application dramatically enhanced the client's abilities to manage, monitor and grow their loan portfolio. Numerous points of automation have enabled client users to dramatically enhance the efficiency and effectiveness of their activities while significantly reducing time, cost and risk. Most importantly, the LMS software application has significantly decreased the amount of time asset managers spend on the maintenance and administration of their portfolios while enabling them to spend much more time making investment decisions.