How can RApportTM help direct lenders?

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Areas of Interest

If your firm wants to generate more high-quality opportunities it should develop differentiated approaches to the opportunities available in the market:

  • Financial Sponsors – Preferred source for junior capital; proactively anticipate portfolio activity & financing ideas
  • Secondary Markets – Actively monitor previous issuances; identify opportunities to adjust the capital structure
  • Banks – Sector perspectives; idea flow to predict transactions
  • Other Capital Providers – Be viewed as a preferred participant in small group deals
Potential Benefits

There are a number of potential benefits, both financial and non-financial:

  • More Good Deals – Opportunity to deploy capital to quality deals with quality backers
  • More Exclusive / First / Early Calls – Get there before the rest; more time for diligence and approval
  • Proprietary Insights – Executive introductions to sponsor management teams and banker contacts; potential proprietary insights
  • Better Market Intelligence – Active monitoring, idea flow, sharing of insights; executive transitions; company litigation
  • Efficient Origination Efforts – Conference cross-checks; sponsor vintages; CTM via bankers;
  • Firm-wide Brand Promotion – Easy to use tools that provide the right data at the right time
Available Resources

In addition to having capital to deploy, your firm has other assets that could be utilized:

  • Creative Financing – Establish the Scarcity principle by demonstrating a history of creativity
  • Intellectual Capital – Sector expertise; insights into companies of interest to sponsors
  • High-Quality Decision-making – Efficient processes; ability to reach a conclusion promptly; follow-through in secondary markets
  • Considerate Relationships – Reasonable terms and approach to amendments/waivers; requested access to management
  • Expert Contacts – Ability to make introductions to sponsors and bankers
  • Fees – Holistic approach to banks’ origination efforts when awarding CLO mandates
  • Risk Relief – Ability to help banks manage commitment and distribution risks
  • Data Goldmine – Capturing and leveraging data can make all this possible
  • Process Execution – Wide-spread adherence to adopted protocols ensures seamless operation and messaging

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How can RApportTM help apply the
Principles of Influence?

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Facts and processes that reinforce your point can affect a desired outcome

Reciprocity
Idea generation for sponsors
Sector expertise
Insight into target companies
Executive introductions
Relationship Investment Analysis (aka Balance of Trade)
Scarcity
Creative financing
A limited number of introductions
Exclusivity of insights
Frequency of early commitments
Relationship Investment Analysis (aka Balance of Trade)
Authority
Sector activity: # deals / market share / top buckets
Early / exclusive looks provided by others
Involvement in recent deals; by sponsor
Firm’s risk profile / structures / terms
Anchor commitments
Consistency
# deals involved w/ sponsor or bank
# of sponsor portfolio companies
# other direct lenders in the group
# of early and/or exclusive looks
Liking
# of previous deals together both as a firm and personally
Appreciative, personal comments during meetings and other events
Systematic congratulatory notes regarding successful transactions with other firms
Alignment of coverage between firms
Systematic monitoring of news source to recognize matters of personal interest and generate personal notes
Optimization of invitations to entertainment/relationship building experiences
Consensus
Sector activity: # deals / market share
# of other “club” groups
Early / exclusive looks by other firms

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What are some of the things you will be able to say?

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Multiple Principles can be reinforced with a statement

Sponsors

Collaboration

Our firms are working well together. Over the past year, we have met with your partners X times to share our insights.  
During the past year, we have provided your firm X exclusive ideas for investment opportunities.   
We have provided anchor commitments on X of your recent financings.  
We are participants in X% of the financings done by sponsors in the Y sector during the past 18 months.  

Sponsors

Expertise

We share your enthusiasm for the Z sector. Over the past two years, we invested $Xmn in Y companies. We estimate our market share in the sector is X%.   
We have committed $Xmm dollars to Widgets Inc. via Y financings since 2015.  
X sponsors have given us direct access to management teams at Y of the companies in the Z sector.  
Our team has X years of combined experience in the Y sector.

Sponsors

Reliability

We know your value prompt decision-making. During the past two years, it has taken us an average of X days from receipt of the CIM to make a decision.  
We may not come into every deal, but we do commit to providing candid feedback. We have given sponsors direct feedback on X of the last 100 deals we have seen.   
We believe we are reasonable investors. During the past X years, we have approved Y% of the amendment or waiver requests we have seen.  
We have provided consent decisions before processes reached their thresholds on X% of the requests during the past Y years.  

Sponsors

Market Leadership

We have provided $Xmm dollars of anchor commitments to Y financings for Z sponsors during the past two years.   
We are willing to take concentrated positions with small groups of investors. We have held 1/2 - 1/3 of the subordinated debt in X companies during the past three years.  
When given the opportunity, we have provided commitment decisions prior to a bank meeting X% of the time.  


Capital Markets Groups

Preferred Investor

We can help you mitigate your distribution risk by helping build momentum. We have provided $Xmm of anchor commitments prior to a bank meeting for Y% of the Z opportunities where we were given an early look.    
We have provided $Xmm dollars of anchor commitments to Y financings for Z sponsors during the past two years.   
We are willing to take concentrated positions with small groups of investors. We have held 1/2 - 1/3 of the subordinated debt in X companies during the past three years.  
We are taking a holistic view of our firm-to-firm relationship. Having access to some of your bankers' expertise will be a consideration when we award mandates.  
For perspective, here is how we have assessed your firm's efforts relative to your competitors.  



Investment Banks

Origination Efforts

We are taking a holistic view of our firm-to-firm relationship. Having access to some of your bankers' expertise will be a consideration when we award mandates.  
We are committed to rewarding banks that demonstrate partnership in our origination efforts. That is why we regularly review these reports to ensure we are following-through and rewarding firms that collaborate with us.    
For perspective, here is how we have assessed your firm's efforts relative to your competitors.  
During the past 18 months, we have had X meetings with bankers from your firm. From those meetings, we discussed Y opportunities that were particularly interesting.     
We truly appreciate the X one-on-one meetings and Y introductions to industry executives during the past two years.   

Sponsors

Collaboration

Our firms are working well together. Over the past year, we have met with your partners X times to share our insights.  
During the past year, we have provided your firm X exclusive ideas for investment opportunities.   
We have provided anchor commitments on X of your recent financings.  
We are participants in X% of the financings done by sponsors in the Y sector during the past 18 months.  

Sponsors

Expertise

We share your enthusiasm for the Z sector. Over the past two years, we invested $Xmn in Y companies. We estimate our market share in the sector is X%.   
We have committed $Xmm dollars to Widgets Inc. via Y financings since 2015.  
X sponsors have given us direct access to management teams at Y of the companies in the Z sector.  
Our team has X years of combined experience in the Y sector.

Sponsors

Reliability

We know your value prompt decision-making. During the past two years, it has taken us an average of X days from receipt of the CIM to make a decision.  
We may not come into every deal, but we do commit to providing candid feedback. We have given sponsors direct feedback on X of the last 100 deals we have seen.   
We believe we are reasonable investors. During the past X years, we have approved Y% of the amendment or waiver requests we have seen.  
We have provided consent decisions before processes reached their thresholds on X% of the requests during the past Y years.  

Sponsors

Market Leadership

We have provided $Xmm dollars of anchor commitments to Y financings for Z sponsors during the past two years.   
We are willing to take concentrated positions with small groups of investors. We have held 1/2 - 1/3 of the subordinated debt in X companies during the past three years.  
When given the opportunity, we have provided commitment decisions prior to a bank meeting X% of the time.  


Capital Markets Groups

Preferred Investor

We can help you mitigate your distribution risk by helping build momentum. We have provided $Xmm of anchor commitments prior to a bank meeting for Y% of the Z opportunities where we were given an early look.    
We have provided $Xmm dollars of anchor commitments to Y financings for Z sponsors during the past two years.   
We are willing to take concentrated positions with small groups of investors. We have held 1/2 - 1/3 of the subordinated debt in X companies during the past three years.  
We are taking a holistic view of our firm-to-firm relationship. Having access to some of your bankers' expertise will be a consideration when we award mandates.  
For perspective, here is how we have assessed your firm's efforts relative to your competitors.  



Investment Banks

Origination Efforts

We are taking a holistic view of our firm-to-firm relationship. Having access to some of your bankers' expertise will be a consideration when we award mandates.  
We are committed to rewarding banks that demonstrate partnership in our origination efforts. That is why we regularly review these reports to ensure we are following-through and rewarding firms that collaborate with us.    
For perspective, here is how we have assessed your firm's efforts relative to your competitors.  
During the past 18 months, we have had X meetings with bankers from your firm. From those meetings, we discussed Y opportunities that were particularly interesting.     
We truly appreciate the X one-on-one meetings and Y introductions to industry executives during the past two years.   

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Let's discuss how RApportTM could help your firm stay ahead of the competition