Boosting Private Credit Operations in a Growing Market
May 5, 2025
Product Update
As private credit continues its remarkable trajectory—projected to reach a staggering $2.8 trillion by 2028(1)—financial institutions are on the lookout for robust and tailored solutions. At Arcesium, we are attuned to these market demands. Our offerings cater specifically to the unique needs of the private credit sector and its various strategies such as direct lending, asset-based financing, tradeable credit, and more.
We are excited to unveil some of the latest features and improvements in our solutions, designed to transform how pure-play private credit firms, diversified private markets managers, and investment firms with private credit strategies, manage their investment operations and accounting.
Effective management of private credit investment strategies and portfolio optimization is essential to remain competitive in the market and to scale efficiently. Direct lending, asset-based finance, and other products in the private credit sphere require different approaches in managing assets, from modeling deals, covenants, duration, and payment schedules, to calculating expected returns and tracking performance, and everything in between.
Our solutions provide comprehensive automation and integration of deal lifecycle operations, enabling firms to manage private holdings with precision. Streamlining complex asset lifecycle events, such as payment in kind, restructuring and defaults ensure timely updates to financial statements and books of record. Arcesium’s domain-aware technology facilitates end-to-end loan setup management, including tracking activities such as interest accrual, payments, and drawdowns, as well as offering detailed performance analysis and robust deal and investor reporting.
We are proud to expand our partner network continually with financial services partners across the industry, from lending platforms and software providers to data vendors and third-party services. Arcesium’s solutions deliver out-of-the-box connectivity to the various notable lending platforms and servicers such as Square, Upstart, Affirm, and more. Recent integrations with vendors specializing in the private credit segment, including Alter Domus and Allvue, ensure our clients benefit from seamless interoperability and exceptional service.
Partner integrations not only streamline workflows but also provide clients with access to a broad range of tools and data, enabling them to make more informed decisions and manage their portfolios more efficiently. Strategic alignment with the industry enables us to offer a unified and integrated experience across the entire private credit spectrum of assets and their lifecycle, from origination to exit. By harnessing the capabilities of our partners, we offer an extensive suite of solutions designed to effectively address the distinctive challenges and possibilities of the private credit market and beyond.
Our Universal Books of Record (UBOR) is a robust accounting system tailored for alternative investments in the private markets. For private credit, we offer powerful workflow and reporting capabilities to support complex lending strategies. Arcesium delivers enhanced investment lifecycle automations, P&L configurations, and reporting capabilities across numerous asset classes. Whether it’s one large direct corporate loan for an individual borrower, or a large portfolio comprising hundreds of consumer and auto loans, UBOR performs intricate accounting for multiple portfolios and books simultaneously, generating accurate P&L results faster. In turn, delivery of quarterly, monthly, or even a daily NAV is efficient and on-time.
Manage all relevant lifecycle events with ease while ensuring accurate accounting. Arcesium's UBOR product efficiently manages common lifecycle events in direct lending and asset-based finance (drawdowns, prepayments, rollovers, more) and specific nuances (payment in kind support, amortization via linear or scientific methods) relevant to this asset class. Additionally, all this handling is executed in a performance efficient way to support scalability for clients.
The automated processing of core loan lifecycle events eliminates manual intervention to produce accurate P&L and accounting. Loan and credit instrument accounting reside within the same accounting system as bonds, equities, and derivatives, setting UBOR apart as a differentiator in the market.
Fully integrated with investment P&L enabling access to a comprehensive, auditable record of all investment activities, presented in a double-entry accounting format. UBOR's journal entry reporting is unified with transaction data and uses the same data inputs used for P&L calculations. Journal entries reporting provides a comprehensive and auditable record of all investment activities processed within the system.
By unifying investment and accounting books of record into a single solution, private credit fund managers can benefit from streamlined performance tracking, optimization, and operational management. UBOR delivers multiple standard reports that support essential operations, including daily NAV, investor statements, trial balance, and cash flow and cash activity reporting.
Our recently upgraded Report Manager solution empowers businesses to create reports even faster with more ease. In a few clicks users can run a search—for example, a list of credit facilities rolling up to a particular issuer—download the results to Microsoft Excel or save the results as a standard report and automate generation and periodic delivery based on a schedule.
Self-service ability is at the core of Arcesium’s solutions, placing business users in the driving seat to flexibly produce reports on the fly or at scheduled frequencies. Capture data from the platform, configure according to your requirements by adding or removing columns, or applying formatting, preview your output, then integrate into your business workflows. Whether you are doing a one-time download for analysis, sending to other systems, or setting up a scheduled delivery, Report Manager enables combining various datasets into a single, standardized yet customizable report.
The Cost Roll Forward Report, the latest addition to enhance our robust reporting capabilities, is tailored to meet the operational and accounting needs of private credit managers. This report delivers accurate tracking and reporting of the costs of investments, returns, and distributions across various asset types (packaged loans, consumer loans, residential loans, etc.). Investors can analyze the performance of direct lending investments with details including beginning cost balances, cost changes for the reporting period, and ending balances.
Our newly revamped Aquata for Excel plug-in allows seamless integration of data housed in Aquata directly into Microsoft Excel. Whether generating reports, conducting analyses, or creating visualizations, this integration streamlines the process significantly. Say goodbye to tedious manual data entry and focus on analysis, gaining real-time insights that drive business outcomes.
As we continue to innovate in the private credit space, our dedication to empowering our clients remains firm. Stay tuned for updates as we forge a dynamic future in private credit operations, delivering solutions that meet the unique challenges and opportunities in the market.
Contact us to learn more about partnering with Arcesium to optimize your private credit investment operations.
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