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Promethion Limited

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Collateralised Loan Obligation manager due diligence. Promethion has performed the commercial analysis and due diligence of acquisitions in the CLO space.

Problem

The client had evaluated a list of potential targets based on research undertaken by Promethion. On the basis of this analysis a leading candidate was approached and discussions initiated to acquire the entity.

Promethion was appointed to undertake the commercial due diligence as part of the purchase negotiations and was required to evaluate the entity.   

Solution

Promethion undertook the commercial due diligence. The target's fund vehicles and internal business processes were evaluated, including:

Financial Impact

Promethion's value-added was provided by its detailed knowledge of leveraged loans as an asset class; its knowledge of the technical analysis of CLO structures and rating agency models; and its extensive experience in evaluating a manager's infrastructure and business processes.

Its analysis confirmed that the commercial basis for the acquisition was sound and would conform to the client's expected standards.