Our Approach
Monachil's proprietary platform is focused on downside protection and generating attractive risk-adjusted returns.
Investment Verticals
Specialty Finance Focus
Lending against loans, receivables, and contractual cash flows across complementary asset-backed verticals.
Secured Consumer Finance
Auto loans, leases, device loans, and home improvement loans through high-growth specialty finance originators.
Unsecured Consumer Finance
Personal installment loans, specialty student lending, and point-of-sale financing with strong borrower alignment.
SME Credit
Merchant cash advance, small-business lines of credit, and working capital financing for established borrowers.
Other Specialty Finance
Factoring and invoice finance, asset-based lending, and other specialty lending verticals with predictable cash flows.
Monachil Credit Income Fund
Registered, continuously offered closed-end interval fund providing access to Monachil's private credit strategy.
Learn More ↗Investment Philosophy
Downside protection first. Returns follow.
The firm strives to underwrite with a capital preservation-first mandate 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.
We focus on retaining the "V" in LTV — ensuring the value backing every loan is monitored, verified, and protected.
Senior Secured Positioning
First-lien 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
Originators 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.
Past performance is not indicative of future results. All investments involve risk, including possible loss of principal.
Investment Process
Differentiated, Data-Driven Investment Process
A transparent, disciplined and repeatable investment process with proven ability to add value through various market cycles.
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 originators with strong business models and recurring cash flows
- Market dislocation opportunities identified through proprietary screening
- Rigorous initial review with investment committee input
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
- Originators retain material first-loss exposure
- First-lien seniority positioning in the capital stack
- Strong security packages and covenants for downside mitigation
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
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
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
- Monachil maintains complete control of funding accounts
- Disciplined capital allocation procedures
Ready to learn more?
We welcome the opportunity to discuss how Monachil can fit within your portfolio.