Despite present market perceptions, there are many industry indicators that would suggest that there is a concentration of healthy lenders within the banking, commercial finance and private sectors that maintain an ability to effectively lend, but for a variety of reasons have withdrawn from the credit marketplace. This withdrawal, whether due to lack of faith in the market, inadequate reporting and transparency, regulatory restriction, or any one of a number of post-2008 confidence-shaking incidents, serves to exasperate credit shortages brought on by the withdrawal of institutional capital from the securitized credit model. By forging a master credit participation system as a basis to access, organize, coordinate, and network these qualified lenders, there is an ability to begin motivating the reintroduction of debt capital into investment portfolios through the use of a proprietary global credit instrument, a Master Credit Participation Certificate or “CPC”. A CPC is governed by a standardized set of terms and conditions, a clear set of underwriting guidelines and policies, and a developing credit and performance risk rating system. This type of universality and transparency can ....
The Master Participating Lender Network affords a wealth of services and benefits to its Participating Lenders. In order to become part of the Participating Lender Network, a candidate Participating Lender must submit certain qualification documents to the Network Manager and enter into a foundational agreement, the Master Participation Agreement. This agreement is entered between each Participating Lender and the Network Manager and establishes the mutual performance obligations of the parties; specifically, the Participating Lender's role in the Network and the acquisition and servicing process for a Credit Participation Certificate. Because all Participating Lenders execute this same master agreement ....
The Participating Lender Network is established as a coordinated body of highly qualified institutions and lenders. Each candidate Participating Lender, prior to being permitted to join the Network, must first meet a minimum qualification benchmark in order to assure it is sufficiently sophisticated to both understand the nature of the underlying Credit and to perform the duties inherent in the operation of the Master Participation Agreement. By definition, a Participating Lender must be an entity that is both (x) either (i) an “accredited investor” as defined in Rule 501 of Regulation D promulgated under the Securities Act of 1933, as amended, or (ii) a “qualified institutional buyer” as defined in Rule 144A promulgated under the Securities Act of 1933, as amended, or (iii) a “qualified off-shore buyer” (as defined below), and (y) a “qualified purchaser” as defined in Section 2(a)51 of the Investment Company Act of 1940, as amended.
Networked Lender Benefits
Master Participation Agreement for consistent terms and conditions
Build a diversified Credit Portfolio with Participations as small as US$100,000
Pre-select Credit types that fit within your credit footprint
Qualify to originate Credits to be acquired by other Participating Lenders
Establish geographic preferences -- local, regional, national, international
Exceptional transparency -- access Credit details and information on-demand
Low monthly subscription cost
An alternative to securitized or bundled Credits
Access to new Credit types and models