Lender Due Diligence
Comprehensive Analysis for Smarter Lending Decisions
North Castle provides in-depth due diligence for both private equity-backed and non-private equity-backed companies, helping lenders evaluate credit risk, identify potential concerns, and ensure financing viability.
For PE Financing
Fast, Focused Risk Assessment for Direct Lenders
Challenge
Restricted Management Access – Lenders can’t fully engage with the senior leadership team.
Limited Information Access – Direct lenders often receive one-sided data from PE sponsors.
Growing Institutional Scrutiny – Private credit expansion demands deeper diligence.
Investment Committee Concerns – Current due diligence models may not provide enough clarity.
Our Approach
FDD-Lite Analysis – A targeted review focused on key business risks.
Minimal Management Disruption – Requires limited senior team involvement.
Data-Driven Insights – Our Data & Analytics team enhances decision-making with sophisticated financial modeling.
Directly Addresses Credit Committee Concerns – Focused reporting that instills lender confidence.
Key Benefits
Minimizes credit risks and reduces default probability.
Improves loan terms for PE-backed companies
Provides independent, third-party validation to assuage credit concerns.
Differentiates lenders in the eyes of LPs.
Cost-effective, ensuring high-value analysis without excessive fees.
Showcases North Castle’s expertise, offering a preview of our full due diligence services.
Assessing M&A Risks and Synergies Before Investing in Debt
A $2.5 billion revenue distributor of residential and commercial roofing materials, siding, waterproofing, and windows was financing the acquisition of a $1.2 billion revenue competitor.