The Voices of Private Credit: Jesus Mirabal, Tenor

Q: Please introduce yourself, your role at Tenor and your background.

A: I’m Jesus Mirabal, the Co-founder and CTO of Tenor. I am primarily responsible for everything related to technology and product development. I’m familiar with startup life and its various responsibilities. I was employee number five at Financial Technologies, Inc. (FTI), a Miami-based company. FTI evolved from a family consulting business into a startup that eventually became Investran, the leading private equity fund accounting software. SunGard acquired that business in 2004, and FIS acquired SunGard in 2015. Throughout those years, I played a myriad of roles. I started as a developer, writing about 75% of the initial code for Investran. I then grew with the company, taking on responsibilities as a development manager and then director of development. Most recently, at FIS, I was part of the strategy group, designing and defining the strategy for the line of business and the group.

Q: What was the inspiration behind starting Tenor?  Was there a particular “a-ha!” moment that revealed a significant opportunity for Tenor Digital?

A: Rather than a single “a-ha” moment, it was a series of more minor points of inspiration over the years. From a professional perspective and through the lens of clients at my former companies, I saw the explosion of private credit and the emerging need for technology solutions that were yet to be available in the market. Building products to address this need rapidly can be hard to achieve in a large organization when most of my time was dedicated to maintaining a large enterprise software platform and satisfying a client base.

On a personal level, I had a strong desire to return to startup mode, where everything is nimble and fast-paced and where I could use the skills I have attained over the years to build innovative solutions. Tony Chung, our Co-founder and CEO, is a long-time colleague of mine who shared the same sentiments. He had gone through a similar journey and recognized the same opportunity. Our combined skillsets and market opportunity were the catalysts for launching Tenor.

Q: How has the role of technology in private capital markets evolved in your experience?

A: If you trace back to how technology started to get applied in private investments or private markets, it began in the early 80s when Jim Simons and Renaissance Technologies created quantitative models that used mathematical analysis in hedge funds – with great success. This was revolutionary since it was the first time the industry saw how technology could be successfully applied to something that was, up until that time, driven purely by human experience or intuition.

When I started in private equity in the 1990s, technology was still considered a “nice to have,” but you would see more firms using custom-built systems or early adopters of Microsoft Excel or Lotus 123, which was starting to become popular in business.

Fast forward to 2024, and technology is now a “must-have” for these firms. The efficiencies resulting from implementing good technology make it a “do or die” investment. This strong demand for tech solutions has led to an influx of many firms providing very vertical, niche solutions to private markets.

Another significant change is generational. There needed to be a better understanding between the latest cutting-edge software and what was available for enterprises in private markets. While this may have been acceptable in the past, it’s no longer the case. They prefer web-native SaaS applications that let them start immediately with a user-centric experience often found in consumer products like iPhone or Android interfaces.

Q: What are some misconceptions about AI in the private credit (or general private capital) space? What applications of AI seem overhyped?

A: I remember learning about the fundamentals and applications of AI in school, and some of those principles have stayed the same. However, what has changed significantly in recent years are breakthroughs in hardware, algorithms and a vast data accumulation over the last 30 years in which technology has been applied to practically all aspects of modern life.

I am intrigued by how AI is being used to address the lack of data standardization. A perfect example is the common exchange of information between LPs (limited partners) and GPs (general partners) via emails and PDFs. We see many AI applications aimed at reading unstructured data to save humans time, and the accuracy rates are rapidly improving.

The best way to utilize AI is to have it assist humans who can review what the technology is doing. Combining AI with human oversight is the most effective approach.

Q: Can you share any advice or best practices for private credit firms looking to invest in tech to improve operations?

A: I highly recommend that firm leaders prioritize their primary goal-growth.  To achieve scalable growth efficiently, adopting a proactive mindset toward leveraging technology is essential.

When collaborating with a technology partner, provide them with a comprehensive view of your operations. This will help them understand your unique workflows, specific nuances, current challenges, and the outcomes you aim to achieve over the next 3-5 years.

Q: Just to get to know you a little more, what was the very first car you owned? Any notable memories you have about it?

A: I immigrated from Cuba to Miami, Florida, in the late 1990s. The first car I bought was a 1983 Chrysler LeBaron. In 1983, it was a great sports car with leather seats and all the amenities. It was run down when I bought it, but it served its purpose. I had that car for about four months, and it was what I needed at the time. A funny story about that car involves my wife, who immigrated from Cuba to Miami four months after I did. I was proud of my car and excited to pick her up from the airport in my fancy vehicle. She loved the car as well. The next day, we went to run some errands and start her immigration paperwork. At the famous intersection of Calle Ocho and 27th Ave. in Miami, the car just fell to the ground—the front axle broke, and that was the end of it. Despite that, it was a fun to drive that car. It had a traditional carburetor and was quite noisy, but it was an experience I’ll never forget.