ABOUT THE COMPANY
Credit investing, relationship-driven
This credit fund invests across direct lending, structured credits, and NBFC equity. With ₹800 crore in AUM and 24 active portfolio companies, they earn returns through careful monitoring and proactive restructuring. Their team includes 5 investment principals and a dedicated analyst. Quarterly portfolio reviews consume 3-4 weeks of work per principal,a heavy lift that limits their capacity to add new investments or respond quickly to portfolio distress.
INDUSTRY CONTEXT & DEMAND
Funds want continuous monitoring, not quarterly snapshots
Credit funds increasingly face LP pressure to monitor portfolios continuously and flag issues before they become write-downs. Quarterly reviews miss 80% of material events,defaults, covenant breaches, and fraud. Manual due diligence on 24 companies takes weeks and ties up senior team. Funds that can shift to daily EWS-based monitoring (rather than quarterly deep dives) free up team capacity for new deal origination and portfolio optimization.
THE CHALLENGE · BEFORE
30 days per portfolio company, quarterly cadence, manual MIS
Portfolio due diligence followed a quarterly cycle. Each portfolio company required 30 days of work: financial analysis of audited statements, covenant monitoring, litigation checks, and borrower health scoring. MIS coverage was 87% (incomplete for small portcos). Critical alerts were missed because there was no daily monitoring layer. Manual spreadsheet work meant each partner meeting required fresh data pulls.
- Quarterly review cadence; 30 days per company to complete
- MIS coverage: 87% of portfolio (13% dark)
- Critical alerts: 4 in 90 days; 2 caught only after losses materialized
- Review turnaround: 1 week to respond to LP queries
- Portfolio companies: 24; team capacity at limit
HOW AICA HELPED · THE SOLUTION
AI-driven 360° reporting + continuous EWS + daily MIS
AICA's Portfolio Monitor was connected to each portfolio company's financials (via banking APIs, GST data, and MIS feeds). The 360° Report automatically generated a comprehensive health dashboard: profitability, covenant compliance, default risk, related-party transactions, and litigation. Continuous EWS flagged changes (covenant breaches, defaults, NCLT filings) daily. MIS Parser pulled financial data automatically, eliminating manual spreadsheet work and enabling live LP reporting.
- Portfolio Monitor, Daily financial aggregation from 24 companies
- 360° Report, AI-scored health dashboard per company in 6.2 seconds
- Continuous EWS, 250+ daily signals per company; alerts within 4 hours
- MIS Parser, Automatic financial data extraction; live LP reporting
THE OUTCOME · AFTER
8-minute due diligence, daily monitoring, 99% MIS coverage
Per-portfolio-company due diligence dropped from 30 days to 8 minutes,a 225× speedup. The fund shifted from quarterly to continuous monitoring, catching 4 critical alerts in the first 90 days vs. 4 in the prior 12 months. MIS coverage reached 99% (vs. 87% pre-deployment). LP reporting turnaround fell from 1 week to 2 hours. Senior team capacity was freed for new deal origination and active portfolio management.
- Due Diligence per portfolio company: 30 days → 8 minutes (225× faster)
- MIS coverage: 87% → 99%
- Critical alerts (90d): 4; 3 caught before losses
- Review cadence: Quarterly → Daily
- LP reporting: 1 week → 2 hours
- Portfolio companies monitored: 24/24 (100%)