For private credit funds
A facility agreement sets a test. A compliance certificate reports against it. A side letter quietly moves a definition. Six months later the question is simply what the covenant is today, and answering it costs an analyst an afternoon. Nemosyne keeps the answer assembled, with the clause it rests on.
The fund's own documents, read where they already are.
Nemosyne reads the executed document rather than the summary someone kept, and when the summary and the agreement disagree it says so and keeps both.
The same three shapes come round every quarter. What changes is not that the work disappears — it is that nobody has to reassemble the record before it can start.
someone opens the agreement, finds the definition, checks whether an amendment moved it, then reads the certificate and recalculates.
the current test, the clause that sets it, the last reported level and any headroom the certificate states are already joined — and an amendment that resets the level is applied rather than missed.
deterioration is spotted when somebody notices, which is usually a reporting period after it began.
each period's tested level and stated headroom are kept side by side, so a covenant that halved in a year is one question away rather than a number nobody compared.
precedent is whatever the committee remembers: what was done last time a borrower asked for this, and on what terms.
earlier decisions come back in the words they were recorded in, beside the test results that followed, so what happened after a waiver or reset can be read rather than recalled.
Illustrative — the firms, names and figures below are invented
Northbank Logistics is a borrower on a €60m facility. The agreement sets a leverage covenant at 3.5x, tested quarterly. The Q2 certificate reports 3.1x, and the credit team wants to know whether that is as comfortable as it looks.
Headroom is not 0.4x. On the agreement's original definition the borrower is at 3.4x, which leaves 0.1x, and the comfort comes entirely from an add-back a side letter permits. Nemosyne keeps both EBITDA figures, each citing the document it came from, so the 0.1x is a sum anyone can check.
Through the same Claude, ChatGPT or Cursor your firm already uses — one connection per firm, and each person sees only what they are allowed to see.
What is Northbank's covenant headroom, and on what basis?
The tested covenant is 3.5x leverage; Q2 reports 3.1x on the definition as amended by the 2024 side letter.
On audited EBITDA, without the add-back, the same net debt works out at 3.4x: headroom of 0.1x, not the 0.4x the certificate states.
Both the clause and the certificate are named, so the analyst checks the definition rather than trusting a number.
What does a borrower actually send you each quarter, and what do you read first?
Some books run on monthly management packs, others on the quarterly certificate alone. What arrives, and in what order, decides which documents Nemosyne treats as the record and which due dates it can watch — so it should be your answer rather than our assumption.
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