Private Credit Is Booming — Is Your Deal Management System Ready?

Private credit has graduated from a niche alternative to a mainstream asset class. Global private credit assets have tripled in the last decade, crossing the $1.5 trillion mark.

As capital inflows surge and deal structures become more complex, investment teams are hitting a wall. The tools that worked for a $50M fund—Excel, email, and generic CRMs—are breaking under the weight of billion-dollar portfolios. Investment professionals are spending more time wrangling data than analysing deals.

Why Generalized CRMs Fail in Private Credit

Salesforce and HubSpot are excellent for selling software or managing B2B sales pipelines, but they aren't built for the intricate lifecycle of a private credit agreement. They lack the native ability to track multiple tranches, complex covenants, PIK interest, and amortization schedules.

Trying to shoehorn a private debt workflow into a sales CRM leads to "customization debt"—an expensive, fragile system that requires constant maintenance. A dedicated Deal Management System is purpose-built to handle the nuances of private debt—from initial screening to final repayment.

Streamlining Due Diligence

In private credit, speed and rigour must coexist. The due diligence process involves huge volumes of documents—financial statements, legal agreements, background checks, and market reports. A modern system centralizes the data room, automates checklist tracking, and allows for collaborative underwriting.

Teams can invite legal and financial experts directly into the platform, ensuring that every due diligence task is tracked and audited. No more "version_final_v3.xlsx" floating around in email threads. Managers get a real-time view of deal health and can identify bottlenecks instantly.

The Digital Investment Committee

The days of printing out 50-page investment memos are over. Getting IC approval shouldn't be a logistical nightmare. Digital voting, automated memo generation, and clear audit trails turn a chaotic email thread into a structured governance process.

With a comprehensive deal platform , IC members can review materials, ask questions, and cast votes securely from anywhere (even on mobile). This significantly speeds up capital deployment, giving you a competitive edge in winning deals.

Post-Investment Monitoring & Risk

The deal isn't done when the money is wired. That's when the real work begins. Managing a portfolio of 50+ loans using spreadsheets is a recipe for disaster.

Automated monitoring of financial covenants and key performance indicators (KPIs) is critical. Instead of waiting for quarterly PDFs to be manually spread, systems can ingest borrower data directly, triggering alerts the moment a covenant breach occurs. This allows for proactive restructuring conversations before a minor issue becomes a default.

Reporting to LPs: Transparency as a Service

Limited Partners (LPs) today demand more than just quarterly PDFs. They want transparency and granular data on portfolio performance. Manually aggregating data for LP reports takes weeks and is prone to human error.

A Deal Management System acts as a single source of truth. You can generate professional, white-labelled investor reports with a single click, showing IRR, MOIC, and sector exposure in real-time. Trust is built on transparency, and instant reporting capabilities are a powerful differentiator during fundraising.

Conclusion

To compete in today's private credit market, operational excellence is as important as deal sourcing. As funds scale, manual processes become the primary constraint on growth. Upgrading to a specialized Deal Management System isn't just an IT decision—it's a strategic imperative that reduces risk and maximizes team productivity.

👉 Transform your investment operations with CarmaOne’s Deal Management System .