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Our Approach

Monachil's proprietary platform is focused on downside protection and generating attractive risk-adjusted returns.

Investment Philosophy

Downside protection first. Returns follow.

The firm strives to underwrite to a zero-credit loss on all investments with downside protection, control, and transparency as the foundation.

The firm is most proud of its risk management framework, which focuses on retaining the "V" in LTV while delivering attractive risk-adjusted returns. Prioritizing diversity of investments by industry, product and geography, strict covenants, data analytics, and sizing deals in the $5–30mm range helps drive performance and mitigate risk.

Monachil brings a creative and flexible approach to investment solutions across numerous verticals with control, transparency and downside protection as the foundation.

Senior Secured Positioning

Exclusive seniority in the capital stack with strong security packages and covenants for downside mitigation.

Real-Time Monitoring

Proprietary risk platform consumes source data, reconciles portfolio-level information, and provides daily asset performance reporting.

Diversification

Diversity across industry, product, and geography with deal sizing in the $5–30mm range to manage concentration risk.

Borrower Alignment

Borrowers retain material first-loss exposure, ensuring alignment of interest and skin in the game.

Data-Driven Decisions

Real-time analytics integral to deal-level and portfolio risk management across the investment lifecycle.

Investment Process

Differentiated, Data-Driven Investment Process

A transparent, disciplined and repeatable investment process with proven ability to add value through various market cycles.

01

Origination

Monachil sources and reviews investment opportunities from multiple sourcing channels, leveraging a dedicated sourcing team and deep industry relationships.

  • Direct relationships with borrowers and origination partners
  • Focus on companies with strong business models and recurring cash flows
  • Market dislocation opportunities identified through proprietary screening
  • Rigorous initial review with investment committee input
02

Underwriting

The underwriting process includes structuring, rigorous due diligence and quantitative analysis on asset performance and cash flows.

  • Key terms discussion with focus on collateral analysis and loan-to-value
  • Borrowers retain material first-loss exposure
  • Exclusive seniority positioning in the capital stack
  • Strong security packages and covenants for downside mitigation
03

Execution

All investments are reviewed by the investment committee and approved by the CIO.

  • Funding schedules aligned with borrower growth trajectories
  • Structural protections enforcing agreement compliance
  • Outside counsel engaged in drafting and closing all transactions
  • Clear terms with enforceable covenants
04

Monitoring

Real-time surveillance of any deviation from expectations with dedicated data analytics capabilities.

  • Dedicated Data Analytics team for asset-level portfolio surveillance
  • Bespoke reporting for contractual term supervision
  • Ongoing covenant compliance monitoring
  • Daily asset performance reporting through proprietary risk platform
05

Portfolio Management

Each fund is managed according to its investment objectives with tactical flexibility and comprehensive controls.

  • Tactical capital allocation flexibility across opportunities
  • Currency hedging where appropriate
  • Complete funding account control by Monachil
  • Disciplined capital allocation procedures

Investment Verticals

Diversified Structured Credit

Private credit opportunities across complementary asset-backed verticals.

Consumer Finance

Personal loans, auto finance, student loans, and home improvement lending through high-growth originators.

Commercial Finance

Equipment financing, working capital solutions, and trade finance for established business borrowers.

Corporate Finance

Syndicated loans, middle-market lending, and corporate credit opportunities with strong cash flow coverage.

Transportation

Aircraft, railcar, and shipping container financing backed by hard assets with predictable utilization.

Specialty Finance

Factoring, asset-based lending, merchant cash advance, and other specialty lending verticals.

Monachil Credit Income Fund

Registered, continuously offered closed-end interval fund providing access to Monachil's private credit strategy.

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