Tech
Industry
Sep 16, 2025
5 minutes
Private credit has expanded into a multi-trillion-dollar asset class, marked by increasingly complex deal structures and heightened investor expectations. Yet many firms still rely on loan management systems designed for a different era. Legacy providers such as eFront originally built for mutual fund accounting and standardized debt portfolios, have been retrofitted for private credit, but the fit has never been more strained.
As portfolios grow and compliance obligations intensify, the limitations of these systems have moved from inconvenient to untenable. Operational bottlenecks, reliance on spreadsheets, and misaligned reporting structures are no longer manageable side effects, they are systemic risks. Increasingly, leading managers are abandoning legacy providers in favor of platforms designed specifically for private credit.
On the ground, the pain points are well known. Revolvers with float interest, delayed draw term loans, and multi-tranche facilities cannot be modeled natively, pushing teams to maintain parallel Excel workbooks. OID and exit fee amortization often fail, particularly when terms vary across tranches, creating manual reconciliation tasks that drain accounting resources.
Conversions to systems like Sentry or Allvue, often pitched as modernization, rarely deliver. Firms report investing millions and waiting years for migrations that ultimately reproduce the same inefficiencies: payoff schedules that miscalculate, amortization schedules that fail to reflect reality, and reconciliation processes that still default back to Excel. Retroactive corrections and agent true-ups add further strain, as legacy platforms lack the flexibility to adjust prior periods without disrupting journal entries.
Reporting is equally constrained. Legacy loan systems still output rigid, quarterly-style reports even as investors and auditors demand daily or intraday transparency on balances, fee accruals, yields, and escrow positions. Analysts are left exporting static data, rebuilding amortization tables, and manually packaging information the system should produce. Even basic tasks such as producing journal entries across portfolios or tracking fair market value over multiple dates require processes outside the system.
The result is a misallocation of talent. Analysts and finance staff spend more time validating calculations and patching spreadsheets than focusing on portfolio construction, credit risk, or investor communication.
The structural weaknesses of legacy platforms compound these daily inefficiencies. Built for mutual funds, these systems usually treat private credit structures (mezzanine loans, NAV facilities, asset-backed lending) as exceptions rather than core functionality. Every amendment, covenant, or bespoke fee type becomes a workaround, leaving firms dependent on vendor timelines and customization projects that stall growth.
Data architecture is another critical flaw. Legacy systems lack open APIs and modern data models, resulting in fragmented sources of truth across finance teams, fund administrators, CRMs, and accounting systems. Administrators and managers often maintain separate datasets that cannot connect, producing duplicate books that must be reconciled line by line. This not only slows reporting but also undermines confidence in the numbers presented to LPs and auditors.
General ledger functionality is also limited. Firms struggle to generate granular journal entries across portfolios, complicating GAAP revenue recognition and slowing month-end close. As firms scale across multiple funds and vehicles, these deficiencies widen into structural bottlenecks.
Some managers have attempted to build custom, monolithic platforms to fill the gap, but these too resist adaptation. What begins as a solution quickly becomes another rigid infrastructure layer, unable to support diversification into new products or structures.
Modern loan management systems address the exact operational gaps that legacy platforms exposed.
The firms making this shift are established managers with multi-billion-dollar portfolios spanning syndicated facilities, escrows, warrants, and equity-linked positions. For them, the tipping point was clear: the risks of remaining on legacy infrastructure outweighed the disruption of moving.
After transition, the improvements are measurable. Amortization schedules that once required constant review now calculate OID and exit fees correctly from day one, even across multi-tranche facilities. General ledger outputs feed directly into accounting systems with the necessary journal-entry granularity, cutting out entire layers of manual rework. Amendments and non-pro rata allocations, once patched in spreadsheets, are processed natively, while agent true-ups no longer derail prior-period reporting.
The effect extends beyond the back office. Fund administrators and internal finance teams now work from a shared dataset, eliminating the duplicate books that previously caused weeks of reconciliation. Investor-ready reporting - daily balances, participant-level views, fair market value snapshots - is generated directly in the platform, meeting external expectations without the need for parallel reporting processes. Month-end closes that stretched into weeks are completed in days.
Just as important, the change frees people to focus where it matters. Analysts are no longer stuck validating mismatched numbers but return to credit analysis, portfolio monitoring, and investor communication. Finance teams can scale with the business rather than just keeping pace with operational errors. And strategically, managers regain the ability to innovate: new structures such as unitranche loans, asset-backed leverage, or revenue-based facilities can be modeled and deployed without waiting for vendor customization cycles.
Hypercore has distinguished itself by being designed for private credit from the outset, developed in close collaboration with managers such as Trinity Capital and Pinegrove Venture Partners. Unlike retrofitted legacy platforms, its architecture is loan-type agnostic, handling revolvers, NAV facilities, mezzanine loans, and equity-linked instruments natively, without bolt-ons or workarounds.
The platform is built on an API-first, open data model that connects seamlessly to general ledgers, CRMs, fund administrators, and data warehouses. Core functions such as amortization methods, fee structures, and invoicing templates are configurable by operators, removing the vendor-dependency that slows legacy systems. Origination, servicing, reporting, and portfolio analytics sit in a single environment, eliminating the need for spreadsheets to bridge gaps.
The impact of this design is tangible. Firms that have transitioned report shorter reconciliation cycles, faster month-end closes, and investor-ready reporting generated directly from the system. In practice, this means that tasks which once took weeks, such as producing granular journal entries across multiple portfolios or ensuring OID and exit fee amortization align from day one, now happen reliably and at scale. Instead of rebuilding data in Excel, both fund administrators and internal teams work from a single, consistent dataset.
Hypercore also sets itself apart in how it is delivered. A dedicated team supports implementation, data migration, and ongoing customization, ensuring the system evolves with the fund rather than becoming another static layer of infrastructure. This combination - purpose-built architecture, open connectivity, operational configurability, and hands-on delivery - is what makes Hypercore a credible alternative to Sentry, Allvue, eFront, and other legacy systems, and why large-scale managers have already made the switch.
Legacy loan systems defined the early years of private credit, when portfolios were simpler and transparency demands lighter. That era has passed. Today, loan structures are more complex, compliance standards more demanding, and investors more exacting. Legacy systems cannot meet these requirements, and firms that remain on them accept mounting risk in exchange for diminishing utility.
Those that have moved on describe not just efficiency gains but a fundamental restoration of control: accurate calculations, aligned reporting, scalable processes, and the ability to innovate without constraint. The gap between firms that modernize and those that do not is widening.
Private credit cannot continue to scale on infrastructure designed for another asset class. The end of legacy loan systems is not a future possibility, it is already underway.
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Tech
Implementation
Sep 15, 2025
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