Operating details

Start with one sponsor’s fund family

The initial wedge is a repeatable LP liquidity program for one sponsor, supported by an administrator and a funding partner. Fund-level diligence, consent language and reporting arrangements can be reused across eligible applications. Each borrower still requires underwriting, effective pledge documentation and lender approval.

LOADLINE would maintain the fund records, lender-specific eligibility policies, borrowing-base calculations and servicing history. The aim is to reduce the work required for each additional loan while keeping approvals and exceptions traceable.

How collateral is assessed

The proposed pilot would combine authorized sponsor and administrator records, available secondary-market evidence and each lender’s credit rules.

Fund records

Confirm the holding, dated NAV, subsequent cash flows, unfunded commitments and required pledge permissions.

Market evidence

Where available, compare relevant secondary trades, bids and estimates. Record the source, date and type of observation, keeping indicative prices separate from completed transactions.

Lender assessment

Apply the lender’s eligibility rules, valuation haircuts and advance limits. The credit file would show reported NAV, an indicative sale-value range where supported, a proposed borrowing limit and unresolved review flags.

Each assessment would retain its supporting records and policy version. Sparse, stale or conflicting evidence would require manual review and could prevent new draws. An estimated sale value does not guarantee a buyer or recovery amount. The lender makes the final credit decision.

Data access and permitted use must be agreed before the pilot. No third-party pricing or marketplace integration is currently committed.

From application to repayment

How the program could scale

This is the intended flywheel, not demonstrated traction:

1. Connect a sponsor and administrator. Establish eligible funds, permissions, reporting and lender requirements.
2. Reuse the approved framework. Prepare additional borrower files using maintained fund diligence and consistent calculations.
3. Build an operating record. Measure processing costs, reporting quality, payments, shortfalls and resolutions.
4. Support more funding relationships. Give prospective lenders evidence they can evaluate under their own credit policies.
5. Improve the sponsor offering. Additional capacity and potentially better economics could attract more eligible borrowers and sponsor programs, restarting the cycle.

The loop depends on borrower demand, lender acceptance and permission to use the data. Funding costs may not fall, lender approvals are not automatically portable, and many loans against one fund remain concentrated exposure.

What would prove it

Compare the incremental cost and time for borrower ten with borrower one, alongside borrower acceptance at actual pricing, net fees after partner costs, and reconciliation accuracy. A second lender accepting the maintained records would test whether the program can support more than one funding relationship.

Where revenue could come from

The illustrative pilot pricing is a 1% origination fee on principal at funding plus a 1% annual servicing fee on outstanding principal, in addition to lender interest. LOADLINE’s retained revenue would depend on agreed partner fees and servicing costs. A separately negotiated warehouse/SPV structure could also provide participation in financing spread after funding costs, expenses and losses. That structure requires explicit allocation of first-loss capital, reserves, guarantees and credit risk. Brokering a bank-funded loan does not automatically give LOADLINE the interest spread.

Proposed operating model

This describes the intended program, not a live lending service. The lender of record, capital provider, servicer, account bank, administrator arrangements, and counsel remain to be agreed before funding.

Who would do what

Fund sponsor

Approve participating funds and required pledge consents; agree reporting and permitted enforcement procedures.

Fund administrator

Confirm ownership and dated NAV; provide distributions and unfunded commitments; follow legally effective payment instructions.

LOADLINE

Coordinate applications, collect documents, calculate proposed borrowing bases, track approvals, and reconcile loan records. Any regulated origination or servicing role depends on licensing and signed agreements.

Lender of record

Make the final credit decision, approve terms and funding conditions, and determine remedies under the loan documents.

Capital provider

Supply funds under an agreed warehouse or loan-purchase arrangement. This may be a different party from the lender of record.

Appointed servicer and account bank

Administer payments and controlled accounts, maintain balances, and provide records for reconciliation. Final duties must be allocated in writing.

Borrower

Provide accurate information, execute documents, meet capital calls and payment obligations, and cure shortfalls when required.

Before a fund can participate

Review fund documents, pledge and transfer restrictions, existing liens, valuation methods, reporting availability, and the administrator’s ability to support distribution instructions. Counsel must confirm the required agreements and enforceability. A portal approval alone does not establish a lien or control over distributions.

Data and monitoring

Each holding record would include its owner, fund and share class, units or interest, valuation date, NAV and currency, distributions, unfunded commitments, existing pledges, and consent status. The pilot would start with validated administrator files. Reporting frequency, permitted valuation age, and escalation thresholds must be agreed with the lender.

Every calculation would retain its source data, effective date, policy version, and reviewer. Revised NAV would create a new record rather than replace the valuation used for an earlier approval. Missing or stale reports would trigger review and suspend new draws where required by the agreed policy.

Funding through closure

Funding would follow identity checks, underwriting, sponsor consent, executed documents, and confirmation that collateral and account arrangements are effective. The lender would release proceeds through the agreed bank arrangements. The servicer would reconcile principal, interest, fees, distributions, and payments against bank and lender records. At repayment, the parties would reconcile the final balance and release collateral as the documents require.

Exceptions

A NAV decline or concentration breach would trigger a borrowing-base review. A missed payment would follow contractual notice and default procedures. A capital call would require review of the borrower’s obligations and funding capacity. Disputed valuations or unmatched payments would remain open exceptions until resolved; the system would not silently treat them as cleared. Cure periods, cash sweeps, additional collateral, and enforcement rights must be specified before funding.