Not every lender in a portfolio originates and agents its own loans. Many lenders — call them co-lenders or debt and credit investors — are participants in loans serviced by another lender entirely. For these co-lenders, the relationship with their own loan data looks very different than it does for a lead lender that faces the borrower directly.
The Problem With Relying on Someone Else’s Numbers
Co-lenders generally depend on their fund administrators to receive loan data directly from the lead lender’s servicing communications — invoices, notices, and periodic updates on interest, principal, and fees. On the surface, that seems workable. But it leaves the co-lender in a fundamentally passive position: without a self-reliant perspective on the loan, the co-lender simply has to trust that the interest, principal, and fee amounts reported by the lead lender are correct.
Ideally, it works differently. A co-lender should have its own gold source of loan data — a way to independently confirm that what it’s receiving from the lead lender’s servicing actually matches what it should be receiving. Moreover, co-lenders may want to maintain accurate daily accruals even when they may only receive loan notices intermittingly.
An Independent Ledger, Built for Co-Lenders
LoanStreet is the premier software solution for maintaining an independent ledger on loans a co-lender doesn’t service itself. Fund administrators — and co-lenders directly — can use LoanStreet’s software to maintain their own gold source of loan data even when another party is doing the servicing, giving them real confidence in the numbers governing their position as well as capturing daily accruals for their accounting systems.
This practice, often called “shadow booking,” allows a co-lender to compare its own expectations against the actual principal, interest, and fees it receives from the lead lender — catching discrepancies before they become larger reconciliation problems down the line.
Intuitive by Design
Maintaining an independent ledger only has value if it’s easy to keep current. LoanStreet’s software lets fund administrators engaged for fund (or loan) administration, as well as co-lenders tracking their own positions, board credit agreements quickly using LoanStreet’s AI document reader — then track and maintain the loan going forward to ensure ongoing accuracy.
That matters because these loans are rarely simple. LoanStreet’s platform is built to handle the real complexity of private credit, including features like PIK, unitranche structures, and non-pro rata funding, alongside portfolio management tools such as financial covenant compliance dashboards and future cash flow projections.
24/7 Transparency, On Their Own Terms
With LoanStreet, co-lenders get round-the-clock visibility into the status of their portfolios — no need to wait on or rely solely on the reporting that comes from the lead lender’s servicer. That independence is the whole point: co-lenders can know where they stand at any moment, based on their own gold source of data. Moreover, LoanStreet’s dashboards help track cross-collateral and cross-guarantee risks portfolio-wide even with different lead lenders and agents as well as other credit risk attributes in a single location.
Loan Administration & Shadow Booking As Gold Source Data
Being a participant in someone else’s deal shouldn’t mean giving up visibility into your own numbers. LoanStreet gives fund administrators and co-lenders the tools to perform effective loan administration or shadow book complex positions, independently verify what they’re being told, and maintain a gold source of loan data they can trust — making it the premier choice for private credit loan administration, no matter which side of the servicing relationship a lender sits.