SixPoint Capital is a private credit fund that offers hybrid capital solutions to Fintech Loan Originators in emerging and frontier markets around the world. Their focus is on off-balance sheet, asset-based lending facilities / warehouse lines secured against revolving pools of receivables, and they have flexibility to take senior or mezz tranches in deals.
SixPoint spun out of a US-focused asset manager to act as their emerging market carve-out. As a newly formed credit fund they were looking for a partner who could provide a turnkey solution to support their investment operations. Their founders had started credit funds in the past and knew that building a proprietary in-house solution would be a significant investment of time and resources. Mitigating fraud and improving risk mitigation was also top of mind given the new jurisdictions they were operating in.
“It's definitely a good solution for a lot of emerging managers and for a lot of emerging early stage fintech direct lending platforms. And candidly, it’s even a good solution for mature credit funds. The main point for mature funds is the fact that they can act as an independent calculation agent and a data validation source. Having a neutral third party is huge.”
Cascade provided an end-to-end software solution that could support Sixpoint across the deal process, from diligence to structuring to post-close monitoring. The platform is agile enough to scale with SixPoint as they continue to expand their portfolio globally. The SixPoint team also appreciated the ability for Cascade to serve as an unbiased and neutral data agent for their portfolio and for their limited partners.
“One of the other major value adds is that I have to build one integration and that's into Cascade. I don't have to build API into every single loan management system, banking API access, etc. They validate the data, clean the data, scrub it, and then quarantine data that isn't validated on my behalf. "
SixPoint is scaling their fund and loan operations at an accelerated rate, and with Cascade they have the infrastructure they need to support this growth in a scalable way. They recently closed a complicated transaction involving multiple SPVs, multiple co-investors, and back-leverage facilities - all reporting and monitoring is managed on Cascade. The platform also allows them to provide added comfort to their investors through real-time reporting, which streamlines their fundraising and investor relations.
A turnkey end-to-end solution, that provides the ability to scale and to provide unbiased data.
The access to data near real-time has strengthened their investment approach and the trust with all counterparties.
“The platform has also been a huge value add for us with our own investors or limited partners. It gives us a level of sophistication they don’t always see. They are blown away when we’re able to show them our dashboards and analytics, especially by the fact that it’s all real-time. It really helps us both from a marketing and investor relations perspective.”