Strategies
Private credit operations with loan-level accuracy
Direct lending and credit funds live or die on the detail of each loan. Fundtec processes agent notices, accrues income correctly and keeps borrower data ready for investment and reporting teams.
In one minute
Private credit fund operations track each loan a fund makes or buys, from funding through repayment: interest and fee accruals, PIK capitalization, OID amortization, agent notices, covenant data and fund-level financing. Fundtec provides loan-level accounting, loan operations and reconciliation for private credit managers and administrators, feeding accurate income and positions into the fund NAV on Tychi or the client’s systems.
Managers running this strategy who want administration and operations that already understand its accounting, valuation and investor-reporting demands.
A 30-minute scoping call, then a written plan: scope, the transition timeline and indicative pricing. No generic proposal.
What makes private credit accounting different
A private credit fund earns income from many sources on each loan: cash coupons on floating benchmarks, payment-in-kind interest, original issue discount, commitment fees on undrawn amounts, amendment and prepayment fees. Each has its own accounting treatment and timing, and most arrive through agent notices rather than a trade feed.
Errors compound quietly. A missed rate reset or a PIK amount not capitalized changes income, NAV and the borrower’s outstanding balance at the same time. Fundtec’s loan operations team processes every notice against the credit agreement and reconciles the loan record to the agent each cycle, so the fund’s book and the agent’s book agree before NAV.
Private credit operations we cover
Loan-level accounting
Position, accrual and income records by facility and tranche, including delayed-draw and revolving commitments.
PIK interest
Accrual and capitalization of payment-in-kind interest into principal on each payment date, with toggle elections recorded.
Amortization and OID
Scheduled principal amortization and effective-interest amortization of original issue discount and upfront fees.
Fee income
Commitment, unused-line, amendment, exit and prepayment fees recognized under the fund’s accounting policy.
Agent notice processing
Rate-set, drawdown, paydown and interest notices read, validated against the credit agreement and booked the same day.
Covenant monitoring data
Borrower financials, compliance certificates and covenant metrics collected and organized for the credit team’s review.
NAV and fund financing
Borrowing base and NAV facility reporting, interest on fund-level borrowing and compliance data for lenders.
Why loan-level data drives the whole NAV
Whether the book holds senior bank loans, unitranche facilities or mezzanine notes, every accrual starts at the loan. Fundtec keeps one loan-level record that feeds income, positions and the reconciliation to each agent, then passes the same data to valuation, where illiquid loans are classified within the fair value hierarchy under the manager’s policy.
How Fundtec supports private credit funds
Use cases
- Hire a Fund AdministratorAdministration for credit funds that need loan-level income feeding a reliable NAV and investor reporting.
- IBOR/ABOR SetupA loan-level investment book of record that the accounting book and NAV draw from.
- Scale Your Investment OperationsCapacity to absorb new facilities, agents and borrowers as the loan book grows.
- Launch a FundOperational design for a new direct lending or credit opportunities fund.
Middle office
- Loan OperationsAgent notice processing, rate resets, PIK capitalization and loan servicing reconciliation.
- Valuations & PricingFair value support for illiquid loans using yield, credit spread and third-party marks under the valuation policy.
- Treasury OperationsFunding of draws, receipt of paydowns and management of fund-level credit facilities.
- Middle OfficeOne record of loan positions, commitments and cash across funds and separately managed accounts.
Managed investment operations
- ReconciliationLoan-level reconciliation of positions, accrued interest and cash to each agent and custodian.
- Shadow AccountingAn independent rebuild of loan income and NAV to check the administrator before sign-off.
- Investor ServicesInvestor onboarding, capital activity and reporting support for credit funds and feeder vehicles.
Private credit income types and how we account for them
| Income or event | Treatment | Source document |
|---|---|---|
| Cash interest | Daily accrual on outstanding principal at benchmark plus margin | Rate-set and interest notices |
| PIK interest | Accrued, then capitalized into principal on the payment date | Agent PIK notice, credit agreement |
| Original issue discount | Amortized into income over the loan life, typically on an effective-interest basis | Funding memo, credit agreement |
| Commitment and unused fees | Accrued on undrawn commitments per the fee letter | Fee letter, agent notices |
| Amendment and exit fees | Recognized per policy, either upfront or deferred and amortized | Amendment documents |
| Principal amortization | Reduces outstanding balance on scheduled dates | Amortization schedule, paydown notices |
| NAV facility interest | Accrued at fund level and allocated per the fund documents | Facility agreement, lender statements |
How an agent notice is processed
Capture
Collect notices from agent portals and email into a single queue with a timestamp.
Validate
Check the notice against the credit agreement: rate, margin, floor, day count, amounts and dates.
Book
Record the draw, paydown, rate reset or payment in the loan record and update accruals.
Reconcile
Match cash received and outstanding principal to the agent and custodian, and log any break.
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 Private Credit
Didn’t find your question? Put it to a specialist directly.
Ask a specialistFrequently asked questions
How does Fundtec account for PIK interest?
Fundtec accrues payment-in-kind interest daily and capitalizes it into the loan’s principal on the payment date specified in the credit agreement or agent notice. Toggle elections are recorded per period. Income, principal and the fund’s NAV all update together, and the new balance is reconciled to the agent’s records.
Do you process agent notices for private credit funds?
Yes. Agent notice processing is a core part of our loan operations service. Each notice is captured, validated against the credit agreement, booked the same day where possible and reconciled to cash received. Discrepancies with the agent are logged, aged and escalated through the agreed matrix.
Can you help with covenant monitoring?
Fundtec collects borrower financial statements and compliance certificates, extracts the covenant inputs, calculates the metrics defined in each credit agreement and flags headroom changes for the credit team. The credit decision stays with the manager. Our role is to make the data complete, current and consistently calculated.
How is OID treated in private credit fund accounting?
Original issue discount is the difference between a loan’s face value and the amount funded. It is generally amortized into interest income over the life of the loan, commonly on an effective-interest basis, and accelerated on prepayment. Fundtec applies the fund’s stated policy consistently and documents it for the auditor.
Do you support NAV facilities and fund-level borrowing?
Yes. Fundtec prepares borrowing base certificates and NAV facility reporting from the fund’s books, accrues interest and fees on fund-level borrowing and tracks compliance data required by lenders. Figures are drawn from the same reconciled records used for the NAV, which reduces rework when lenders ask questions.
Can Fundtec run private credit operations on our existing loan system?
Yes. Under our investment operations model, a dedicated team works inside your loan administration and accounting systems through your own domain accounts and VPN. Data stays in your environment with access controlled by you. Alternatively, our managed investment operations run the loan book and fund accounting on our platform, Tychi, with the team included.
Continue exploring
Loan Operations
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.…
Read more →JurisdictionsCayman Islands
Cayman remains the default offshore domicile for hedge funds and a leading one for private funds. Fundtec supports the accounting, investor service…
Read more →JurisdictionsLuxembourg
Luxembourg is Europe’s largest fund domicile and the home of the EU marketing passport. Fundtec supports the accounting, investor services and repo…
Read more →Who We ServeAsset Managers
Asset managers answer to investors, auditors and regulators at once. Fundtec runs the trade, reconciliation, treasury and oversight processes that…
Read more →Who We ServeFund Managers
A first fund needs institutional operations before it has institutional scale. An established manager needs capacity and independent oversight wher…
Read more →Get every loan, notice and fee on the book
Share your facility count, agents and current process. We will show how loan operations and fund accounting fit together.