Victory Park Capital Specialty Lending (VSL) has ensured its portfolio companies shift from new originations to understanding and managing borrower liquidity needs over the next six to nine months amid the coronavirus outbreak.
The alternative finance-focused investment trust has revealed details on how it will monitor its mainly US-orientated portfolio as the pandemic persists.
The platform said its investment team has stopped further deployment of funds and it is working with its holdings to ensure they manage liquidity through origination volume and help support borrowers who fall into trouble.
Firms in its portfolio have also shifted personnel from origination to early stage collections, VSL said,
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“The focus continues to centre around risk management and risk controls with a particular emphasis on liquidity across the spectrum,” VSL said.
“Our dedicated risk management team continues to work collaboratively with the investment teams to limit deployment considerably as we seek further information on performance.
“In addition, we are closely monitoring the portfolio and proactively working with our portfolio companies to ensure that they are taking prudent steps to mitigate risk and manage through the ongoing situation.
“We have instituted an all-hands call at the beginning and end of each day, so that everyone on our team is updated on any new developments given this rapidly changing environment.”