Does a slowing economy increase the risk of loan defaults in private debt?

Well-run private debt funds use rigorous scenario testing and real-time monitoring to mitigate risks. Historical net write-offs by banks peaked at just 0.68% during the GFC and were 0.04% in September 2024, demonstrating strong resilience across economic cycles.

Does a loan default always result in a credit loss?

No. Private debt investors are protected by their seniority in the capital structure. Senior debt holders get repaid first, before subordinated debt, preferred equity, and common shareholders. Covenants and controls act as early warning signals allowing lenders to engage with borrowers to mitigate financial loss.

Are all private debt managers the same?

No. Private debt managers differ significantly in scale, credit skills, and experience. Quality managers need sizable assets under management, bank-level credit skills, extensive networks, and the ability to directly originate and diversify loans across borrowers to achieve optimal outcomes.

Does commercial real estate debt put capital at risk in a property downturn?

Property owners face greater risk than lenders. With typical loan-to-value ratios of 60%, owners' equity acts as a buffer. Even if property values fall significantly, lenders can compel borrowers to restore their position or pursue asset sales to maximize recovery without necessarily incurring losses.

Are non-bank lenders lenders of last resort?

No. Competent private debt managers lend to quality companies and often compete with banks or work alongside them in lending syndicates. Post-GFC regulations requiring banks to hold more capital have created financing gaps that private debt fills for established companies with sound fundamentals.

Metrics implements nCino to scale its corporate lending business

nCino, Inc. (NASDAQ: NCNO), a pioneer in cloud banking and digital transformation solutions for the global financial services industry, today announced that Metrics Credit Partners, a leading Australian non-bank corporate lender, has adopted the nCino Bank Operating System® to transform their corporate lending practices to further support sustained growth. Metrics selected Industrie&Co to support project delivery.

As an organisation focusing on highly structured, larger corporate loans of A$10 million to A$150 million, Metrics needed a digital solution that would allow them to handle a wide range of borrowers, loan types and structures with varying financial and reporting covenants. With nCino’s Commercial Banking Solution, Metrics has access to enhanced dashboards and reporting, giving them more granular portfolio and client level insights. The Metrics Investment Team also has a holistic view of their clients and greater insight into the entire portfolio, helping them to enhance their risk management practices. Additionally, nCino’s Document Manager enables Metrics to store and categorise all of their deal-related files for quick identification and retrieval.

Due to the COVID-19 pandemic, the entire nCino implementation was run remotely. To assist with the delivery of the nCino platform, Metrics partnered with Industrie&Co, a technology company with extensive financial services experience that helps institutions navigate digital transformation. Through the combined efforts of teams from all three organisations, Metrics was able to quickly adopt nCino despite the remote working environment.

“nCino gives us a technology platform that is scalable with our business, which is essential given our continued growth,” said Andrew Lockhart, Managing Partner at Metrics. “Of the providers we examined, nCino was best able to meet all of our needs, and their commitment to innovation means we will continue to benefit from enhancements over time. We had a tight timeframe for getting up and running on nCino, and Industrie&Co proved to be an agile partner with a deep understanding of financial services that aptly met our various needs.”

“We’ve been delighted to support Metrics with their nCino implementation” said Lukas Bower, Managing Director at Industrie&Co. “The combined team was able to deliver a great outcome under a tight deadline, in spite of COVID-19. Kudos for a great effort.”

“Any transformative project will face its share of challenges, but none of us could have anticipated having to undergo a significant technological implementation while under lockdown due to a global pandemic,” said Mark Bernhardi, general manager – APAC at nCino. “I’m incredibly proud of what our three teams were able to accomplish together. The collaboration between our organisations is a huge step forward in the digitisation of Australian financial services.”

About Metrics
Metrics is the largest Australian non-bank corporate lender and alternative asset manager specialising in fixed income, private credit, equity and capital markets. Metrics offer a range of debt products to borrowers across the full credit risk spectrum, across the capital structure, and across industries. Whether it’s working alongside banks in traditional syndicated lending facilities, or working directly with borrowers to structure innovative tailored solutions, Metrics provides a valued source of non-bank capital in an increasingly constrained market. Metrics has lent over A$10 billion across more than 325 transactions since launching their first fund over seven years ago. With significant industry experience and expertise, Metrics is focussed on delivering execution certainty for its corporate borrowers and creating innovative investment products.

About nCino
nCino (NASDAQ: NCNO) is the worldwide leader in cloud banking. The nCino Bank Operating System® empowers financial institutions with scalable technology to help them achieve revenue growth, greater efficiency, cost savings and regulatory compliance. In a digital-first world, nCino’s single digital platform enhances the employee and client experience to enable financial institutions to more effectively onboard new clients, make loans and manage the entire loan life cycle, and open deposit and other accounts across lines of business and channels. Transforming how financial institutions operate through innovation, reputation and speed, nCino works with more than 1,200 financial institutions globally, whose assets range in size from $30 million to more than $2 trillion. For more information, visit: www.ncino.com.

nCino – 2 February 2021

This press release contains forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally include actions, events, results, strategies and expectations and are often identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans,” “seeks,” “estimates,” “projects,” “may,” “will,” “could,” “might,” or “continues” or similar expressions. Any forward-looking statements contained in this press release are based upon nCino’s historical performance and its current plans, estimates, and expectations, and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent nCino’s expectations as of the date of this press release. Subsequent events may cause these expectations to change and, except as may be required by law, nCino does not undertake any obligation to update or revise these forward-looking statements. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially. Additional risks and uncertainties that could affect nCino’s business and financial results are included in reports filed by nCino with the U.S. Securities and Exchange Commission (available on our web site at www.ncino.com or the SEC’s web site at www.sec.gov). Further information on potential risks that could affect actual results will be included in other filings nCino makes with the SEC from time to time.

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