Better recoveries from challenged software credits.
Speed of recovery, maximum value, or the right point between: you set the recovery objective. We underwrite the path to it, and put our own capital behind the answer.
The loans were underwritten for a different market. The companies are still in it. Why recoveries fail in software →
Alary Capital works with lenders to get the best recovery from challenged software and tech-enabled services credits, with operating capability, underwriting discipline and our own capital deployed in whatever order your recovery requires.
In addition to lenders, we also work with sponsors, management teams, and the counsel, accountants and bankers who refer them.
Three ways we work
In the order a lender usually needs them. You choose which seat we take on a company.
Stabilize and operate
Interim leadership and hands-on operating work, including a chief restructuring officer seat where one is needed, to stop the confidence draining out of a software company while the next step is decided.
Underwrite and prepare the sale
Exit underwriting and the fix list: can this company sell, to whom, at what supported price, and what has to be fixed first, then the fixes worked in the order of what each is worth.
Bid, where you ask for one
Where you elect it and the company fits our mandate, our bid at the supported price arrives with the underwriting: a real number from a buyer who has done the work, before the process rather than after one fails.
One underwriting, two ways to act
We work two ways: as an investor that bids, and as an operating partner paid on the recovery it produces. Both start with the same underwriting, the recovery underwritten the way the loan was, and you choose which seat we take on a company as part of the engagement: a bid from us where the company fits our mandate, or an operating partner with no bid.
Economics are agreed at the start and follow the work. The reads and the underwriting are fixed, the same fee whatever they conclude, because the answer is not for sale. The operating and preparation work is paid for the time it takes, with the larger part of what we can earn tied to the recovery you set, because the outcome is.
We can bid on what we underwrite. Why trust the number?
Because the seat is yours to choose. On any one company we are a bidder or an operating partner, never both, and you elect which in writing as part of the engagement. The underwriting is yours: a bid is an option you can test in the market, not a price you are anchored to, and declining it costs you nothing but the decision. The diagnostic fee is the same whatever the report says, and the same whether or not you have asked us to bid.
A challenged credit drags on the book the way water drags on a hull. The work is to reduce the drag so the hull can fly.
Each stage earns the next
Each stage is priced to stand on its own, and none of them asks you to commit ahead of the evidence.
- The portfolio watch
- A standing screen across your watchlist, run on the reporting you already hold. Quarterly, no name designated, nothing signaled to the market. AI empowered for cost-effective implementation.
- The first read
- One name, two to three weeks, largely off your existing reporting package: what recovery range does this credit support, and whether a full underwriting is worth buying.
- Exit underwriting
- The full diagnostic, where the first read has earned it: the four straight answers, the fix list, and a conclusion: go, no-go, or sell as-is. Where you have asked for it, our bid arrives with the report.
No Salvage Value: Why Software Credit Recovers Differently
When a software loan turns, there is no collateral to liquidate toward: enterprise value is recurring revenue carried on confidence, and it recovers, or does not, on decisions made before any process starts. Why recoveries from challenged software credits disappoint, what waiting costs the claim, and the underwriting discipline that changes the outcome.