Compliance Is Defined Deal by Deal, and Tested Continuously
Every private credit transaction sets its own eligibility criteria, concentration limits, and covenants in the credit agreement. Staying compliant means testing collateral against those rules on an ongoing basis, not just at close, and flagging breaches or near-breaches before they become problems.
Rules-Based Testing, Run Continuously
Eligibility Testing
Ongoing testing of each asset against transaction-specific eligibility criteria.
Concentration Monitoring
Tracking of exposure against concentration limits by obligor, sector, geography, or asset type.
Covenant Compliance
Monitoring of financial and reporting covenants defined in the credit agreement.
Breach & Trigger Alerts
Notification of covenant breaches and items approaching breach levels.
Reporting Requirement Tracking
Tracking receipt of required borrower reports and compliance documentation.
A Missed Test Is a Missed Risk
Eligibility, concentration, and covenant rules exist to protect lenders. A missed test or a late covenant breach can mean unexpected losses or a deal drifting out of compliance without anyone noticing. Continuous, rules-based testing keeps risk visible and gives lenders time to act.
Built for Lenders and Managers Who Can’t Afford Blind Spots
We support private credit managers, asset-based lenders, insurance companies, and structured finance participants who need dependable eligibility, concentration, and covenant testing across their transactions.
Bespoke Rules, Applied Consistently at Scale
PCS/1 encodes each transaction’s eligibility, concentration, and covenant rules and applies them across tens of thousands of collateral lines, flagging breaches and near-breaches automatically.
Frequently Asked Questions
Choosing an operational partner is an important decision. Whether you’re moving away from spreadsheets, replacing a provider, or preparing for growth, we’re committed to providing the transparency and expertise you need to make an informed choice.
What is eligibility testing?
Eligibility testing checks each asset in a transaction against the specific criteria set in the credit agreement to confirm it qualifies as collateral.
What is concentration monitoring?
Concentration monitoring tracks exposure against limits set by obligor, sector, geography, or asset type, so no single concentration grows beyond what the deal allows.
What does covenant compliance monitoring cover?
It covers the financial and reporting covenants defined in the credit agreement, including tracking required borrower reports and flagging breaches or near-breaches.
How is this different from borrowing base and waterfall calculations?
Those calculations determine draw availability and cash distribution and live on a separate page. This page covers the testing and compliance side: eligibility, concentration, and covenants.
What technology supports this service?
Our proprietary platform, PCS/1, encodes and applies each deal’s rules across large collateral pools automatically.
Can Oak Branch help with covenant compliance reporting?
Yes. Oak Branch can build covenant compliance reporting around borrowing base tests, collateral performance triggers, advance-rate limits, concentration limits, delinquency thresholds, coverage tests, and other transaction-specific requirements.
Can PCS/1 support covenant compliance dashboards?
Yes. PCS/1 can power dashboards that show covenant status, pass/fail results, threshold cushions, historical trends, exceptions, and supporting detail. These dashboards help users identify compliance issues before they become reporting surprises.
