Alternative Investment Funds Scorecard

The Challenge
As Alternative Investment Funds (AIFs) mature, greater transparency is needed. This is especially the case given the trend for some funds to access loans from banks and other financial institutions to boost their leverage. This increased leverage within the AIF universe poses potential credit risks to various counterparties that provide fund financing. As a result, it is important to effectively score the credit risk of an AIF.

The Solution

S&P Global Market Intelligence Credit Assessment Scorecards provide a valuable framework for assessing credit risk, including access to benchmarks and attribute-driven scoring guidelines. The AIF Scorecard provides an easy-to-use, intuitive structure for financial institutions to evaluate the creditworthiness of funds, and also supports an assessment of the credit risk of an AIF’s debt instruments.

AIF Scorecard’s business applications
The AIF Scorecard provides a powerful capability for organizations to consistently measure credit risks across AIFs that have different strategies and structures, including:

Hedge Funds
Private Equity Funds
Fund of Funds (FOFs)
Fund-like Entities
Transparency and complexity

AIF Scorecard structure
The AIF Scorecard provides a granular and transparent framework for assessing credit risk. It uses measures that can affect the likelihood of default, and these are sensitive to changes in an AIF’s market conditions. They include:

Stressed leverage
Risk position
Funding and liquidity
Jurisdiction risk
Fund track record and investment performance
Risk management
Transparency and complexity

Contact us to request a demo

Brochure

Explore how the AIF Scorecard provides an easy-to-use, intuitive structure for financial institutions to evaluate the creditworthiness of funds, and also supports an assessment of the credit risk of an AIF’s debt instruments.

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Case Study

Discover how credit risk and fund financing teams are leveraging Credit Assessment Scorecards from S&P Global Market Intelligence to assess the creditworthiness of AIFs.

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Blogs

The series is designed to help readers understand the basics of AIFs, highlight the critical credit risk factors for AIFs and fund-level financing, and present a solution to assess the creditworthiness of AIFs and fund-level financing.
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Read Part 3 >