Better recoveries from challenged 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 collateral moved off the balance sheet. The workout playbook did not move with it. Why recoveries disappoint when there is nothing to repossess →
Alary Capital works with lenders to get the best recovery from challenged asset-light credits, with operating capability, underwriting discipline and our own capital.
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 value draining out 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 price, and what has to be fixed first.
Bid, where you ask for one
Where you elect it and the company fits our criteria, our bid at the supported price arrives with the underwriting.
You choose the seat we take
We take one seat on a company, an investor that bids or an operating partner with no bid, and you elect which in writing before the work starts.
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.
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.
Start with one name
In an asset-light business the measures that predict a recovery are operating measures rather than financial covenants: how the revenue base renews, where the customers concentrate, what the product costs to run, and who is leaving. They move quarters before a covenant does.
Which means the question of what a credit will actually recover can be answered long before anyone calls it a workout. The first read is where that starts: one name, two to three weeks, largely off the reporting you already hold plus one management session. It ends with what recovery range the credit supports, and whether a full underwriting is worth buying.
No borrower contact you have not agreed, nothing signaled to the market, and no commitment to the step after it. Across a whole book, the portfolio watch runs the same screen standing, quarterly, with no name designated.
No Salvage Value: Why Software Credit Recovers Differently
Software is where this shows first. The valuation reset, the ARR loans converting to EBITDA covenants, the amendment wave, and why the middle of the software M&A market is empty.