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