Why Automation is the Key to Scaling Private Credit Operations
- Tony Chung
- Mar 25
- 2 min read
In a recent report, McKinsey "suggests that the size of the addressable market for private credit could be more than $30 trillion in the United States alone." As regulatory constraints push banks to the sidelines and investor appetite for yield increases, non-bank lenders are stepping into the spotlight.
This structural shift has unlocked massive opportunity but also exposes a critical challenge: scaling operations at the same pace as capital flows in.
The Scaling Paradox
Most private credit firms aren't held back by a shortage of deal flow or capital.
They're held back by operational drag.
Every new loan adds complexity. With custom structures and negotiated covenants, no two deals look the same.
Data lives everywhere and nowhere. Monitoring key borrower metrics or generating portfolio-wide insights requires hopping across systems—or worse, spreadsheets.
Manual workflows create friction. Legacy platforms and human bottlenecks slow responsiveness and increase risk from borrower payments to amendment approvals.
Why Automation Is a Strategic Lever
Automation isn't just about efficiency—it's about building operational leverage that scales with your AUM.
Faster execution = competitive advantage. Automated workflows reduce time-to-close without sacrificing precision.
Stronger controls = investor confidence. With audit trails, version control, and real-time monitoring, automation ensures compliance by design.
Smarter teams = higher impact. Freeing analysts, ops teams, and deal managers from routine tasks means focusing more on underwriting, structuring, and risk management.
Where to Start: Post-Close is Prime for Automation
While many firms focus on front-end origination tools, the most significant lift comes from streamlining what happens after the deal is signed:
Loan Onboarding & Execution. Automate the capture of deal terms, legal docs, and funding workflows.
Portfolio Monitoring & Compliance. Track borrower financials, covenants, and early warning indicators without manual inputs.
Amendments, Workouts, & Restructurings. Digitize internal workflows for faster approvals and clearer audit trails.
Reporting & Investor Communications. Generate LP reports, regulatory filings, and portfolio dashboards at the click of a button.
Looking Ahead
Non-bank lending isn't a side trend—it's where private capital is headed. But with scale comes complexity. The firms that win won't just be great at sourcing deals—they'll be the ones that build operational platforms to manage them intelligently.
Private credit is evolving. Your operations should too.