Calculation Agent

Accurate and Transparent Calculation Agent Services for Structured Finance

As a Calculation Agent, Concord Servicing acts as an independent party responsible for performing, validating, and reporting on the complex calculations that underpin structured finance and private credit facilities. From monthly waterfalls to investor distributions, Concord ensures that performance tests, cash-flow allocations, and covenant triggers are calculated accurately and transparently. This role provides investors, trustees, and issuers with confidence that financial results are not only correct but also fully aligned with contractual agreements.

Our Calculation Agent offering includes:

• Waterfall Calculations: Independently performing waterfall allocations of principal, interest, fees, and reserves according to the transaction’s legal documents.
• Investor & Lender Reporting: Preparing and distributing detailed investor reports that reflect accurate allocations, test results, and portfolio performance.
• Performance & Covenant Testing: Calculating overcollateralization (OC), interest coverage (IC), delinquency, concentration limits, and other facility-specific tests.
• Fee & Reserve Management: Computing and allocating servicing fees, trustee fees, liquidity reserves, and credit enhancement accounts.
• Event & Trigger Monitoring: Tracking and reporting on covenant compliance and escalation events (e.g., early amortization, excess spread triggers).
• Integration with Trustees & Administrators:Coordinating with trustees, custodians, and administrators to ensure seamless reporting and consistent calculation methodologies across the facility lifecycle.

Key Benefits:

• Accuracy & Transparency: Independent calculation reduces the risk of errors or disputes, ensuring that all stakeholders rely on a trusted, neutral source of truth.
• Investor Confidence: Consistent and auditable reporting builds trust with investors, rating agencies, and lenders, supporting broader market acceptance and secondary liquidity.
• Stronger Governance & Oversight: Adds a layer of operational control that aligns with best practices in structured finance and private credit governance.
• Early Issue Identification: Automated and independent performance testing enables faster detection of covenant breaches or portfolio deterioration, protecting investor interests.
• Efficiency & Consistency: By standardizing calculations across multiple facilities, Concord reduces operational friction, increases efficiency, and ensures accuracy even in complex or multi-asset structures.
• Support for Fund & Private Credit Facilities: In NAV, subscription, and back-leverage structures, a trusted Calculation Agent ensures investors and LPs receive accurate valuations, compliance reporting, and performance triggers, critical for today’s growing private markets.