If your team is tracking loan covenants across ten or more portfolio companies in spreadsheets, you already know the pain. Financial reports arrive late, someone updates a formula, a threshold shifts, and a breach gets missed until it is too late to act.
Here is a look at the five covenant monitoring software tools that are actually built to fix this in leveraged finance and private credit, and how they compare.
1. Termgrid: Tracks covenant compliance, capital structures, maturities, and hedging positions across leveraged debt portfolios in a single debt-native platform.
2. Allvue Systems: Delivers percentile-based covenant benchmarking and early warning signals for BDCs and institutional private credit lenders.
3. Cardo AI: Automates real-time covenant testing triggered directly by borrower financial uploads, with strong asset-based finance capability.
4. timveroOS: Encodes covenants as policies-as-code with AI-assisted breach probability scoring for large institutional private credit managers.
5. Moody’s Lending Suite: Automates covenant management for banks and institutional lenders with AI-assisted document validation and portfolio stress testing.
Best for: Private equity sponsors and capital markets teams managing leveraged debt portfolios
Termgrid’s Portfolio Management module is the only covenant tracking system in this list designed specifically for the debt financing workflow in leveraged and acquisition finance. Most portfolio monitoring tools were built for equity. Termgrid was built for sponsors and lenders managing term loans, revolving credit facilities, and fund finance structures across multiple portfolio companies.
What makes the approach different is the connection between deal execution and portfolio monitoring. For firms already using Termgrid to run their financing processes, all loan terms, lender relationships, and credit agreement data carry through automatically into the portfolio layer. There is no manual re-entry of covenant thresholds or EBITDA definitions from credit agreements into a separate system.
The module covers covenant compliance tracking, capital structure visibility per portfolio company, amortisation schedule tracking, upcoming maturity alerts, hedging position monitoring, allocation and fee tracking, and a customisable financials tracker for quarterly performance data.
Termgrid has been recognised as Best End-to-End Technology by The Drawdown, Financing Technology at the International M&A Awards, and New Solution Provider at the PE Wire US Awards. The platform serves over 30,000 active users including KKR, Bridgepoint, Permira, Apax, and Charlesbank.
“Termgrid is a clear solution for Capital Markets professionals and is continuing to expand offerings that help us drive better execution in our financings. Termgrid is a value-added partner to us, helping us grow our business.”
MD & Head of Capital Markets, Charlesbank Capital Partners
Verdict: The strongest choice for PE firms and capital markets teams managing leveraged debt portfolios. The only platform combining deal execution and debt portfolio monitoring in a single debt-native environment.
Best for: BDCs and institutional private credit lenders requiring end-to-end loan lifecycle management
Allvue Systems is an end-to-end platform for private capital with a private credit module covering deal origination, underwriting, portfolio monitoring, and investor reporting. Its covenant monitoring functionality includes percentile-based benchmarking, comparing borrower performance against peers rather than simply checking a fixed threshold.
This approach surfaces early warning signals before a technical breach occurs. A borrower’s leverage ratio moving from the 60th to the 93rd percentile of its peer group over two quarters is a meaningful signal even if the covenant has not technically been breached. Allvue surfaces that signal automatically.
Verdict: A strong choice for institutional private credit lenders and BDCs. Less suited to PE sponsors primarily managing acquired debt.
Best for: Private credit lenders looking for real-time automated covenant testing
Cardo AI is a private credit platform with a dedicated automated covenant monitoring module. Borrowers upload financial statements directly into the system, which calculates key metrics in real time. When a threshold is crossed, an alert fires immediately rather than waiting for the next manual review cycle.
The platform supports financial, affirmative, and negative covenants, manages waiver requests, and maintains a full audit trail. It markets itself particularly to lenders in asset-based finance, where covenant structures tend to be more complex and testing mechanics more varied.
Verdict: A capable real-time covenant tracking system for private credit lenders, particularly in asset-based finance. Less suited to PE sponsors.
Best for: Large private credit managers running complex multi-fund structures
timveroOS positions itself as an operating system for private credit, covering the full investment lifecycle. Covenants are encoded as policies-as-code, authored as configurable rules rather than manually tracked. The platform includes AI-assisted breach probability scoring, coverage forecasting, and amendment prediction.
It handles unitranche, senior, and mezzanine structures, supports multi-fund and SPV allocations, and automates agency tasks including rate settings and waterfall calculations.
Verdict: A powerful platform for institutional private credit managers with complex governance requirements. May exceed what most PE sponsors need.
Best for: Banks and institutional lenders managing large commercial loan portfolios
Moody’s Lending Suite includes an automated covenant management module for banks and institutional lenders. It automates the full process from document request through to testing and compliance confirmation. AI-assisted document validation removes the manual step of checking whether borrower submissions are complete before testing begins.
Moody’s brand recognition and data infrastructure give strong credibility in institutional banking, and its stress-testing tools allow lenders to model covenant headroom under different economic scenarios across the portfolio.
Verdict: A capable real-time covenant tracking system for private credit lenders, particularly in asset-based finance. Less suited to PE sponsors.
Termgrid Portfolio Management
The right tool depends on which side of the debt transaction you are on and how your team is structured. Work through these four questions before evaluating platforms.
Are you a sponsor or a lender? Sponsors managing acquired portfolio company debt need a system that understands leveraged buyout capital structures and connects to the deal execution workflow. Lenders originating private credit need a system focused on borrower onboarding and compliance testing at scale.
How many portfolio companies are you monitoring? Below five companies, a structured spreadsheet may be sufficient. Between five and fifteen, the case for a dedicated covenant tracking system becomes clear. Above fifteen, manual processes carry meaningful operational and credit risk.
Do your covenants connect to your deal execution workflow? The best covenant tracking system pulls loan terms directly into portfolio monitoring. Re-entering covenant thresholds and EBITDA definitions manually creates extra work and the risk of transcription errors.
What else do you need to track alongside covenants? Covenants are one risk. Upcoming maturities, amortisation schedules, hedging positions, and capital structure changes all affect a portfolio company’s debt profile. A system that covers only compliance testing gives you a partial picture.
Want to see how Termgrid handles covenant monitoring for your portfolio? Find out more here.
Termgrid
