Investment Process
Monachil’s proprietary platform is focused on downside protection and generating attractive risk-adjusted returns
Differentiated, Data Driven Investment Process
Transparent, disciplined and repeatable investment process with proven ability to add value through various market cycles.
ORIGINATION
MCP sources and reviews investment opportunities from multiple sourcing channels
Dedicated sourcing team
Seeking opportunities through market dislocations
Screening companies with strong business models and recurring cash flows
UNDERWRITING
Includes structuring, rigorous due diligence and quantitative analysis on asset performance and cash flows
Discussion of key terms
Borrowers retain material first loss-exposure
Monachil seeks exclusive seniority in the capital-stack
Strong security packages and covenants for mitigating potential downside risk
EXECUTION
All investments reviewed by investment committee and approved by CIO and CFO
Funding schedule aligned with borrowers’ growth plans
Structural protections to enforce compliance of executed agreement
Outside counsel involved in drafting, reviewing and closing
MONITORING
Real time surveillance of any deviation from expectations
Dedicated Data Analytics team supports asset-level portfolio surveillance
Bespoke reporting supports supervision of contractual terms
Ongoing monitoring of portfolio criteria and covenant compliance
PORTFOLIO
MANAGEMENT
Each fund managed according to its investment objectives
Tactical allocation allows for flexible and opportunistic deployment of capital
Hedging in place to eliminate cross currency exposure
Monachil retains total control of all funding accounts
Procedure to ensure proper capital allocation