Who We Serve · Private Credit & Debt Funds
Independent Analysis for Private Credit & Debt Funds
Private lenders take on construction, transitional and stabilization risk that banks often avoid. That risk is priced on the borrower's business plan. We test the plan and then monitor it.
Scope
What this analysis is for
Bridge, construction and transitional loans are underwritten on a future state of the collateral: completed, leased, stabilized. A sponsor's business plan describes that future state. Credit committees need an independent view of whether the market supports it, how long it will take and what happens to coverage if it takes longer.
Wert-Berater supports origination with market, feasibility and collateral analysis, and supports portfolio management with construction, stabilization and watchlist monitoring.
Analytical framework
Credit analysis sequence
- 01
Market analysis and feasibility
Whether the collateral's market supports the business plan.
- 02
Collateral analysis
Current and stabilized value indicators and their sensitivity.
- 03
NOI and debt service
In-place and projected NOI against debt service across the loan term.
- 04
DSCR
Coverage in the weakest period, including interest reserve depletion.
- 05
Construction
Budget, schedule and cost-to-complete for construction loans.
- 06
Stabilization
Absorption pace and the date at which takeout financing becomes achievable.
- 07
Watchlist and portfolio surveillance
Ongoing monitoring of loans moving outside expected performance.
Evidence
Credit tests
Each line is tested against independent market and operating evidence, not accepted from the sponsor or seller model.
| Variable | What we test |
|---|---|
| Business plan timing | How many months of delay before interest reserves are exhausted? |
| Takeout | At stabilization, does NOI support a permanent loan sized to repay the bridge? |
| Collateral value | Value under base and downside market assumptions. |
| Coverage | DSCR across the term, not only at stabilization. |
Application
Typical engagements
Pre-origination
Market and feasibility analysis before credit approval.
Construction loan oversight
Construction and cost-to-complete monitoring.
Watchlist
Focused analysis on loans with deteriorating performance.
Portfolio surveillance
Recurring monitoring across the loan book.
Work product
What you receive
- Collateral market and feasibility reports
- Business plan stress analysis
- Construction and stabilization monitoring
- Watchlist and portfolio surveillance reports
Scope boundary. Wert-Berater does not lend, broker or arrange credit. Our analysis supports the lender's own credit decision.
Analytical continuity
After the Investment: Independent Performance Monitoring
For a debt fund, monitoring is the continuation of credit underwriting: construction progress, lease-up pace and coverage are measured against the business plan that justified the loan.
The analytical relationship does not have to end when the feasibility study is delivered. Wert-Berater can continue monitoring the asset against the original underwriting assumptions, updating market conditions, testing coverage, identifying performance variances and maintaining a recurring analytical record.
-
Individual Asset Monitoring
- Revenue
- Expenses
- NOI
- DSCR
- Occupancy
- Market rents
- Competitive supply
- Value
- Original underwriting assumptions
-
Watchlist Monitoring
Most relevant here- DSCR deterioration
- NOI deterioration
- Occupancy
- Revenue
- Expenses
- Market conditions
- Collateral / value
- Stabilization
- Refinancing risk
-
Construction Monitoring
- Progress
- Budget
- Cost-to-complete
- Schedule
- Change orders
- Draws
- Remaining costs
- Lease-up
- Stabilization
-
Portfolio Monitoring
- Portfolio performance
- Risk
- Concentration
- Market exposure
- Annual review
- Re-underwriting
- Watchlist
- Portfolio-level trends
Related analysis
Continue through the lifecycle
Discuss the analysis before you commit to it.
A briefing is a working conversation about the decision, the evidence available and the scope that would answer it. There is no obligation, and nothing is subscribed.