Private debt securitization converts a private loan into a security. The loan is assigned to a compartment ring-fenced inside one of MTCM’s six Luxembourg SPVs, which then issues a note under an ISIN of its own. Interest and principal collected by the compartment fund the payments due under the note.
A private loan cannot be booked by most institutional investors, because it is a contract rather than a security. MTCM opens a compartment for that facility in a Luxembourg SPV, ring-fenced from everything else it holds, and a note with its own ISIN is issued from it. The compartment can hold a single loan or a defined portfolio, and can also act as first lender where the borrower needs new money rather than a transfer of existing debt. That compartment is governed by the Luxembourg Securitization Law of 22 March 2004, as amended in February 2022, and it is bankruptcy remote in both directions. Legal counsel to the platform is GSK Stockmann; the compartments are audited by PwC and Atwell.
Held in custody, transferred or listed like any other security.
Segregated by law from every other transaction on the platform.
Protection runs in both directions.
The exposure leaves the originator’s balance sheet.
One loan to one borrower, structured as a standalone compartment.
A closed, identified set of loans held together in a single compartment.
Short-dated lending against a defined repayment event.
Junior positions structured with their own ranking in the compartment.
Loans convertible into equity under conditions written into the note.
Loans within a corporate group, made transferable to outside holders.
Loans with security over property, receivables, equipment or shares.
The compartment grants new lending directly, instead of acquiring an existing loan.
Revolving and drawdown facilities structured for a defined borrower.
Debt tranches within a wider project financing, isolated in their own compartment.
Private debt securitization converts a private loan into a security. The facility sits inside a compartment that Luxembourg law ring-fences, and the note issued from that compartment carries its own ISIN. Interest and principal collected by the compartment fund the payments due under the note.
A loan wrapper is a securitization compartment that holds a loan and issues a note against it. It exists so that investors who can hold securities, but not bilateral loan agreements, can take the same underlying exposure through an instrument their custodian recognises.
Yes. The compartment can act as first lender, granting the facility itself rather than acquiring a loan that already exists. This is used where the borrower needs new money and the parties prefer a single lender of record.
Tranching means issuing more than one note against the same compartment, each with a defined ranking. Senior notes are paid before mezzanine, and mezzanine before junior. The ranking is set when the compartment is structured and is written into the terms of each note.
No. MTCM is not a bank. It does not lend its own capital, and does not manage third-party capital. MTCM structures and administers the compartment through which the facility is held and the note is issued. Credit exposure sits with the noteholders.
Private lenders and debt funds that need to transfer or syndicate exposure, private banks and wealth managers whose clients want debt exposure in custody-eligible form, and borrowers who want a single structured lender rather than a club of counterparties.
| Position | What it holds | Order of payment |
|---|---|---|
| Senior note | First claim on collections from the facility | Paid first |
| Mezzanine note | Claim ranking behind the senior note | Paid after the senior note |
| Junior note | Residual claim on what remains | Paid last |
Ranking is fixed in the terms of each note when the compartment is structured. It describes the order of payment, not the amount of any payment.
80+ active compartments · €2.5 bn+ assets structured. Indicative platform figures.