The growing relevance of private debt is closely linked to structural changes within the financial system. Since the financial crisis, stricter regulatory frameworks such as Basel III have significantly curtailed the lending capacity of traditional banks. As a result, companies are increasingly turning to alternative sources of financing, particularly when navigating more complex funding requirements or pursuing growth strategies. Private debt fills this gap with individually structured financing solutions that can be flexibly tailored to a wide range of corporate situations.

From an investor’s perspective, private debt also offers a compelling set of advantages. Historically associated with stable returns, the asset class makes a meaningful contribution to portfolio diversification. In a volatile market environment, floating-rate instruments have come into sharper focus. Floating rate loans, in particular, are currently in strong demand, as they help stabilise return profiles in a dynamic interest rate environment. Yet with rising attractiveness comes increased complexity. The operational demands placed on systems and processes – particularly in terms of transparency, control and efficiency – have grown considerably. This is precisely where Profidata’s XENTIS comes into play. Our Investment Management Software does not merely support private debt; it provides comprehensive coverage of the functional, operational and structural requirements inherent to this asset class.

Advantages of XENTIS for our customers

With the latest release for Alternative Investments, we have further refined the modelling of private debt within XENTIS. The result is a solution that reduces operational complexity while delivering the technical depth required to manage even the most sophisticated private debt structures with confidence. A key component is the management of floating interest rates. As private debt investments are frequently linked to reference rates, XENTIS enables the centralised monitoring and adjustment of interest rate changes across the entire portfolio. Amendments can be implemented in a clear, consistent and fully traceable manner – with a strong emphasis on simplicity and transparency. Equally flexible is XENTIS in its handling of repayment structures. Complex repayment terms, partial redemptions or individually agreed payment schedules can be configured and automated directly at contract or investment level.

The new loan schedule user interface provides additional transparency. The detailed amortisation schedule of an individual transaction is clearly visualised, allowing planned repayments – such as annuity or bullet structures – to be compared with actual cash flows at any time. The integrated plan-versus-actual comparison creates clarity around payment streams and supports precise operational control in day-to-day business.

Another key building block is the interplay between interfaces and document management. Through adaptable interfaces, information from loan agreements, interest rate notifications and other contractual documentation can be transferred to the relevant investments in an audit-proof manner. Supporting documents can be stored directly at investment or loan file level and managed centrally – structured, traceable and accessible at all times. Valuation and interest accrual are likewise fully integrated into the system: dedicated functionalities support the automated calculation of accruals as well as valuation at investment level. For example, external broker quotes for senior loans can be efficiently imported and processed further.

Private debt deployed strategically

In addition, XENTIS offers a high degree of customisation. Proprietary transaction templates can be created specifically for certain classes of financial instruments – for example to reflect the calculation logic of PIK loans. These templates can be configured flexibly for different business cases, including the consideration of country-specific booking logics. The solution is complemented by powerful reporting capabilities. Relevant base data for private debt investments is aggregated and structured in a way that enables consistent, transparent reporting to both internal and external stakeholders – in line with best practice under the Invest Europe guidelines.

Private debt presents significant opportunities – yet it demands solutions capable of mastering its complexity. With XENTIS, Profidata provides a platform designed precisely for this purpose. Our expert Zoran Sucic would be pleased to demonstrate in a personal discussion how we can support you in modelling and managing your private debt investments. Contact us to arrange a tailored consultation.