Covenant monitoring for bilateral direct lenders
Direct lending funds negotiate every facility one-to-one. Every loan ends up with its own covenant package: DSCR, ICR, LTV, leverage, plus deal-specific tests like minimum liquidity, excess cash flow sweeps, or sponsor support undertakings. CapitalBridge tracks them all per facility, recomputes automatically on borrower submissions, and gives the credit team one cross-portfolio view of risk concentration.
From facility close to compliance reporting, in one platform
Direct lending covenant compliance is not a back-office afterthought; it is the credit risk function in operational form. CapitalBridge captures the covenant package at facility close, applies it on every borrower data submission, surfaces deterioration proactively, and gives the credit committee an audit-ready view at every quarterly review.
- Per-facility covenant package, defined once at close
- Cascading defaults for sponsor-led, sector, or product type
- Borrower portal eliminates email-based data collection
- Audit trail every credit committee will trust
"We do not need a fund-accounting platform. We need a place where 80 facilities each with different covenants live, computed correctly, every quarter."
One lender, one deal. No shared covenant package.
A syndicated facility's covenants are negotiated once with the whole lender group and reported by the borrower to the agent bank, who distributes one certificate to every participant. Everyone reads the same test, on the same schedule.
Every direct lending facility is negotiated bilaterally, so no two loans carry the same covenant package. A senior term loan might test DSCR and leverage; a unitranche adds minimum liquidity; a sponsor-led deal adds a support undertaking. CapitalBridge tracks each package on its own thresholds and headroom, per facility, with cascading defaults so new loans do not start from a blank page.
Every facility's own package, on one board
| Facility | Covenant | Level | |
|---|---|---|---|
| Kanzu Finance / Senior Term Loan | DSCR | 1.42x | Compliant |
| Sahel Agri-Co / Unitranche | Min. liquidity | headroom 5% | At-risk |
| Northstar Energy / Second Lien | Leverage | over cap | Breach |
Bespoke packages, computed the same way
Different tests per facility, same deterministic engine underneath, so a credit committee can compare across the book without reconciling formats.
What's compliant across the book right now?
80 facilities, one flagged:
Illustrative figures. Same figures the dashboard shows, read-only and logged.
No spreadsheet, just the question
80 facilities with 80 different packages still answer in one query, because the covenant engine, not a workbook, holds the definitions.
What software is best for direct lending covenant monitoring?+
Direct lending covenant monitoring requires per-facility covenant configuration, real-time recalculation on borrower data submission, and a way to scale across 30-300 borrowers without spreadsheets. CapitalBridge is purpose-built for this: department-budget pricing, 2-4 week implementation, borrower self-service portal. Allvue Systems is a stronger fit for very large credit funds running CLO and waterfall structures alongside direct lending.
How does Allvue compare on private credit and direct lending?+
Allvue Systems is a strong commercial platform for private credit and direct lending, with deep loan-level capabilities, waterfall calculations, and broad fund-management functionality. Pricing typically runs $50K-200K+ per year with 6-12 month implementations. For mid-market funds focused specifically on covenant compliance and counterparty reporting, CapitalBridge offers comparable covenant depth at department-budget pricing with 2-4 week go-live.
How does direct lending covenant monitoring differ from syndicated loan monitoring?+
Direct lending covenants are negotiated bilaterally per facility, so each loan can carry a different covenant package, threshold set, and headroom profile. Syndicated loans share standardised covenants across the lender group, with agent-bank reporting cadences. CapitalBridge handles bilateral direct lending covenants per facility, with cascading rule overrides, and supports syndicated loans where the fund acts as a participant.