Use Case Proposal for Due Diligence – Accelerating and Enhancing Private Credit Fund Analysis with Scalata
Due diligence in private credit is a critical step to assess borrower risk, validate deal terms, and ensure portfolio quality. However, manual review of financials, legal documents, and collateral information can drag out timelines and obscure risk insights, limiting your fund’s agility.
Step 1: Confronting Manual, Fragmented Due Diligence Workflows
- Your team spends weeks manually extracting and synthesizing data from financial statements, credit agreements, and servicer reports. This labor-intensive process is prone to errors and prevents a holistic understanding of emerging portfolio risks and opportunities.
Step 2: Building a Unified AI-Powered Due Diligence Data Core
- Scalata ingests and structures varied documents—financials, legal contracts, collateral appraisals—into a comprehensive and searchable database. AI-powered extraction captures critical metrics such as debt ratios, covenant terms, and repayment schedules, creating a dynamic foundation for analysis.
Step 3: Enabling Interactive Risk and Compliance Evaluation
- Using Scalata’s conversational AI, analysts can query complex questions like, “Show all loans with debt-to-equity ratio above threshold X” or “Summarize legal compliance exceptions across the portfolio.” Instant, data-backed answers enhance decision-making and focus diligence on high-risk areas.
Step 4: Automating Due Diligence Reports and Risk Monitoring
- Scalata generates standardized due diligence memos, risk assessments, and compliance checklists automatically. Proactive AI agents monitor ongoing borrower performance and covenant adherence, flagging deterioration early to protect portfolio health.
The Strategic Outcome with Scalata:
You move from slow, manual due diligence to a fast, precise, and scalable process powered by AI. This accelerates deal review cycles, improves risk mitigation, strengthens compliance, and enables more confident capital deployment.
