Investment Operations
Loan operations outsourcing, from drawdown to paydown
Loans do not settle like bonds. Every drawdown, repayment, rate reset and amendment arrives as a notice that has to be read, booked and reconciled. Fundtec’s loan operations team does that daily.
In one minute
Loan operations is the servicing of a fund’s loan portfolio after the deal closes: processing agent notices, booking drawdowns and repayments, accruing interest and fees, capitalizing PIK, recording amendments and reconciling each position to the administrative agent. Fundtec provides outsourced loan operations for private credit managers and bank loan funds, working in the client’s loan platform or on Tychi.
Managers whose desk, administrator and investors need to see the same numbers, and whose middle office has outgrown spreadsheets or a stretched in-house team.
A 30-minute scoping call, then a written plan: scope, the transition timeline and indicative pricing. No generic proposal.
What loan operations covers in private credit
A direct lending or senior bank loan portfolio generates a steady flow of events: drawdowns on delayed-draw and revolving facilities, scheduled and voluntary repayments, interest rate resets, fee payments, PIK capitalization, waivers and amendments. Each arrives as an agent notice, often a PDF by email, and each changes the position, the cash and the income the fund reports.
Fundtec’s loan operations team is one of the four services in our middle office. It reads every notice, books it in the loan platform, recalculates accruals independently and reconciles each facility to the administrative agent. The result is a loan book the portfolio manager, the administrator and the auditors can all rely on. See private credit for how this fits the wider fund operating model.
How an agent notice is processed
Receive and log
Notices arriving by email, agent portal or platform feed are logged with facility, event type and effective date.
Validate
Amounts, rates, dates and share percentages are checked against the credit agreement and the fund’s holding.
Book
The event is booked in the loan platform or IBOR: drawdown, repayment, rate reset, fee, PIK or amendment.
Cash and treasury
Expected cash is passed to treasury operations for funding or receipt matching.
Reconcile
The facility position, accrued interest and cash are reconciled to the agent after the event settles.
Escalate
Discrepancies with the agent are raised, tracked and resolved, with the credit team informed of anything material.
Loan events and what Fundtec checks
| Event | What we book | What we check |
|---|---|---|
| Drawdown / funding | Increase in funded commitment and cash out | Available commitment, pro rata share, value date |
| Scheduled repayment | Principal reduction and cash in | Amortization schedule, allocation between tranches |
| Prepayment | Principal reduction, any prepayment premium | Call protection terms, premium calculation |
| Interest rate reset | New base rate and margin for the period | Benchmark fixing, margin grid, floor, day count |
| Interest and fee payment | Cash receipt against accrual | Independent accrual recalculation |
| PIK capitalization | Increase in principal from capitalized interest | PIK rate, toggle election, compounding date |
| Amendment or waiver | Updated terms and amendment fees | Signed documents, effective date, fee treatment |
| Secondary trade settlement | Position change on assignment or participation | Trade terms, delayed compensation, settlement date |
Loan-level reconciliation and credit data support
- 01
Position recs versus the agent
Funded and unfunded commitments, outstanding principal and accrued interest reconciled facility by facility to agent statements, not just in aggregate.
- 02
Accrual control
Interest, commitment fees, ticking fees and PIK accrued independently and compared with agent calculations each period, with differences explained.
- 03
Covenant and borrowing base data
Borrower financials and collateral reports collected, key data extracted and templates populated for the credit team’s covenant and borrowing base review. Credit judgments remain with the manager.
- 04
Loan platforms
We work in the platform the client already uses, for example WSO, Allvue or Loan IQ, and in settlement platforms such as ClearPar, or run the book on Tychi.
Loan operations deliverables
- Daily agent notice log with booking status
- Upcoming events calendar: resets, payment dates, maturities
- Monthly facility-level reconciliation to agent statements
- Accrual recalculation and variance report
- PIK and amendment history by facility
- Unfunded commitment report for liquidity planning
- Covenant and borrowing base data packs for credit review
Why loan operations breaks as a credit fund grows
Spreadsheets work for the first handful of loans. By the time a fund holds dozens of facilities across several agents, notices get missed, PIK is capitalized on the wrong date and the administrator’s income does not match the manager’s. Fundtec’s team scales with the book and feeds clean loan data to the administrator and our reconciliation team. For a broader growth plan, see scale your investment operations.
Engagement model
How an engagement is structured
Economics aligned to your growth. Scope, cadence and pricing are confirmed jointly in the first phase.
- 01 · Weeks 1–4
Onboarding & design
A phase-linked fee covers process mapping, the operational handbook, systems access and the SLA framework — before any handover.
- Target operating model
- Operational handbook
- SLAs agreed jointly
- 02 · From the parallel run
Monthly base fee
Your dedicated team, pod manager oversight and the governance cadence — daily huddle, weekly review, monthly service review, QBR.
- Named PM → SME
- Trained backup for every role
- Governance included
- 03 · As you grow
Scales with AUM
AUM-linked tiers and pre-agreed triggers for new mandates or counterparties — so growth never means renegotiating the contract.
- Transparent triggers
- No renegotiation
- Quarterly pricing review
Every engagement starts with a scoping call — no obligation, no generic proposal.
Request an indicative proposalQuestions
Common questions about Loan Operations
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Ask a specialistFrequently asked questions
What does outsourced loan operations include?
Fundtec’s outsourced loan operations covers agent notice processing, drawdowns and repayments, interest rate resets, independent interest and fee accruals, PIK capitalization, amendments and waivers, secondary trade settlement support and facility-level reconciliation to the administrative agent. It can also include covenant and borrowing base data preparation for the credit team.
Which loan administration platforms do you work in?
Fundtec works in the platform the client already licenses, such as WSO, Allvue or Loan IQ, and in settlement platforms such as ClearPar for syndicated loan trades. Clients without a loan platform can run the book on Tychi, Fundtec’s proprietary operations platform. The process and controls are the same either way.
How do you reconcile loans to the agent?
Each facility is reconciled to the agent statement on funded and unfunded commitment, outstanding principal, accrued interest and cash received. Reconciliation is done loan by loan, not in total, so offsetting errors do not hide. Differences are raised with the agent, tracked in a break log and resolved before month-end close.
How is PIK interest handled?
Payment-in-kind interest is accrued at the PIK rate and capitalized into principal on the date set by the credit agreement, including any toggle elections by the borrower. Fundtec recalculates the PIK amount independently, books the capitalization and reconciles the new principal to the agent so income and position stay aligned.
Does Fundtec monitor covenants for our loans?
Fundtec prepares the data: we collect borrower financials and collateral reports, extract the figures each covenant or borrowing base calculation needs and populate the manager’s templates. Assessing compliance, deciding on waivers and forming credit views stay with the manager’s credit team, which keeps investment judgment with the adviser.
Can you support bank loan funds as well as direct lending?
Yes. Broadly syndicated bank loans bring secondary trading, long settlement cycles and delayed compensation on top of the servicing events in direct lending. Fundtec handles both: servicing events from agent notices and trade settlement through the platforms the client uses, with all positions reconciled to agents and the administrator.
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Tell us about your loan book, agents and platform. We will show how Fundtec’s loan operations team would take it over.