Loan valuation and accounting
Proposed marks with methods and assumptions, compared with administrator marks. Cash interest, PIK, OID, fees, amortization and carrying value. Quarter-to-quarter movement explained.
For SBIC fund managers
Close the SBIC quarter in one system.
- Covenant tests for every borrower
- GAAP-to-SBA bridge and capital impairment
- ASC 820 marks for loans, equity and warrants
- Form 468 support
Computed from your documents, with the source page, calculation and approver behind every number. Your administrator still prepares and files.
Read-only demo fund, a full SBIC quarter-end. No sign-up.
Covenant monitor · Q3 2026Demo fund
Brakeholt Engineered Products Co.Total leverage, amended maximum 4.00×
4.20×Borrower certificate
4.50×Recomputed from the credit agreement
4.20×
4.50×
3.00×
4.00× max
5.00×
BreachMismatch 0.30×
Fixed charge coverageMinimum 1.50×
Borrower reports 1.60×Not tested
The financials lack inputs the agreement’s formula requires, so NSight does not accept the reported pass.
SBIC first
SBA basis, capital impairment and SBA forms are built in, not bolted on.
SBIC edition
Built and demonstrated end to end on a synthetic fund, from borrower package to Form 468 support.
Yours to keep
A dedicated instance in your cloud or ours, with permanent use rights to your version.
90-day target
Production delivery within 90 days of complete credit documentation and data.
How the quarter runs today
Most quarters still run on workbooks, email and one person who knows how they fit.
Borrower packages arrive as PDFs and spreadsheets. Figures are re-keyed into monitoring, valuation and compliance workbooks. The administrator sends Form 468 schedules, the valuation firm sends marks, and someone reconciles it all by hand before the board pack goes out.
It holds together until someone asks where a number came from.
| At quarter-end | In workbooks and outsourced files | In NSight |
|---|---|---|
| A borrower package arrives | Someone opens the PDF and types EBITDA into three different workbooks. | Extraction proposes each figure with the page it came from. An analyst confirms it once, and every schedule uses the confirmed value. |
| The SBA basis is due | The administrator computes it and the team reviews a PDF. | GAAP and cost reconcile to SBA value by position. Depreciation ties into capital impairment, and the computed figure is compared with what was filed. |
| A covenant is tested | The ratio on the compliance certificate is copied into the tracker. | The ratio is recomputed from the agreement’s own definition and effective-dated threshold. The certificate stays beside it for comparison. |
| An input is missing | A blank cell reads as zero, or the borrower’s figure fills the gap. | The test shows Not tested. Missing is never zero and never a pass. |
| A mark moves | The new mark is pasted in. Last quarter’s reasoning lives in an email thread. | Proposed, administrator and approved marks stay separate, and the explanation stays attached through later corrections. |
| Something needs correcting | A cell is overwritten. Which version reached the board is hard to prove. | The quarter is locked. A second person approves the correction, and the original issued pack is retained. |
| The analyst leaves | The logic leaves with the person who built the workbook. | Rules run as versioned code, the same way on every position, every quarter. |
Your administrator, valuation firm and auditor stay in place. NSight gives your team the evidence and calculations to review their work and stand behind your own.
SBIC edition
From the position to the fund.
The SBA basis is a rulebook, and NSight computes it like one. Cost rolls forward from Schedule 1c activity, collection in doubt is tested, GAAP and cost reconcile to SBA value by position, and depreciation carries into the 13 CFR 107.1840 capital impairment calculation.
15.14%Capital impairment, computed from reviewed fund inputs
45%Maximum permitted for this fund under 107.1830
29.86Percentage points of headroom
Synthetic demo fund, Q3 2026. GAAP value of $100.4M less $4.8M of appreciation above cost, and cost of $107.25M less $11.65M of SBA depreciation, both reach $95.6M of SBA value. The maximum depends on each fund’s equity mix and leverage.
The checks, in plain words
Each check shows the submitted value, the computed value, the rule and the source page, then asks the reviewer to confirm, correct or explain. Every disposition is logged.
| Area | What gets flagged |
|---|---|
| Cost | A loan carried above cost. Cost that does not tie to the Schedule 1c ledger. Collateral used to justify appreciation. |
| Doubt | More than 120 days past due, insolvency or going-concern doubt with no depreciation. PIK or accrued interest added while collection is in doubt. Status of Performing while Schedule 4 shows past due. |
| Basis | GAAP value below SBA value. A mark that does not follow from its own stated assumptions. SBA cost and GAAP carrying value that differ with no attributed reason. |
| Fund | Computed impairment that differs from the filed figure. A fund within five points of its limit. Includible non-cash gains misclassified. Class 2 appreciation without a qualifying event. |
What the checks catch
Three findings a copied schedule would miss.
- The filed percentage was low.
A loan 137 days past due, carried at cost with arrears rolled into principal. Depreciating it moves the vehicle from 36.0% filed to 41.8% computed, against a 45% limit.
- The PIK note is not includible.
A capitalized PIK note filed as an includible non-cash gain is excluded, and the preliminary impairment test changes with it.
- The assumptions do not give the number.
A submitted mark of $9,500,000 recomputes to $9,534,149 from its own assumptions, and to $9,421,711 at the spread the file supports.
Closing, Form 1031 and Form 468
Capture each financing once, then carry it into every form that needs it. Size and affiliate conclusions stay with your people.
- Forms 480 and 652. Prefilled from the closing record, with signed copies, use of proceeds and conditional documents tracked.
- Form 1031. Assembled by license and calendar quarter, reconciling follow-ons, tranches and earlier filings. Missing required evidence blocks readiness.
- Form 468 support. A multi-sheet workbook shaped to Schedules 1, 1c, 3, 4 and 5, with valuation and board schedules. Your administrator or filer submits.
Four states, never merged
A download is not a filing. Each state is recorded separately, with its own evidence.
1
ApprovedA specific revision, by an independent reviewer2
ExportedOfficial XLSX and readable PDFs retained3
SignedOutside NSight, with the signed copy attached4
SubmittedOutside NSight, and only with recorded evidenceCorrections create a linked, reviewed replacement. The original artifacts and receipts stay retrievable.
Covenant review
The certificate says 4.20×. The agreement says 4.50×.
NSight reads the credit agreement to define each test, then calculates it from the borrower’s reviewed financials. The reported figure stays alongside the result, so a mismatch is recorded as a finding instead of being quietly corrected.
1
2
1Fixed charge coverage
1.60× reported. Not tested.
The borrower reports 1.60× against a 1.50× minimum. The financials lack inputs the agreement’s formula requires, so NSight shows the calculation as unavailable. A reported pass does not stand in for a calculated one.
2Total leverage
4.50× calculated. 4.20× reported.
Applying the agreement’s definition gives 4.50× against an amended 4.00× maximum. The 0.30× mismatch and the breach are recorded as separate findings, each with its definition, inputs and source.
Tests the Foundation supports
Total and senior leverage, minimum EBITDA, interest coverage, fixed charge coverage, springing tests, minimum liquidity with grace periods and excess-cash sweeps. Amendments are effective-dated. Waivers and cures are recorded beside the original breach and never replace it. Stress scenarios run separately from actuals.
How it works
Extraction proposes. People confirm. Code computes.
Each layer does one job and never another’s. That separation is what makes a number reproducible when an auditor, an SBA examiner or your own board asks how it was reached.
Extraction
Finds and proposes
Reads borrower PDFs, workbooks and credit agreements. Proposes figures and terms with the page, units and period. It never computes a covenant, a mark or an impairment.
People
Confirm, judge and approve
Analysts check each proposed input against its source. Reviewers approve results, and nobody approves their own work. Investment judgment stays with your team.
Code
Calculates the same way every time
Deterministic rules compute covenants, loan schedules, SBA values and impairment. Each result stores its inputs, rule and engine version, and reruns without calling a model.
One quarter, start to finish
- 01Collect
Reporting requirements and due dates drive restricted borrower upload links, reminders and escalation. Partial, rejected and accepted packages are tracked separately.
- 02Confirm
Proposed figures and agreement terms are checked against the source page before anything uses them.
- 03Compute
Covenants, loan schedules, marks, the SBA bridge and capital impairment run on confirmed inputs under your fund’s documented policy.
- 04Approve
Each exception is confirmed, corrected or explained, and a second person approves. Every disposition is logged.
- 05Issue
The quarter locks. Credit, board, fund and SBIC outputs share one approved version, retained exactly as issued.
Who it is for
Built for the people who answer for the quarter.
Each role gets a different question at quarter-end. NSight answers from the same reviewed record, so the answers agree with each other.
| Role | The question on your desk | What NSight puts in front of you |
|---|---|---|
| CFO or controller | Does the Form 468 support tie, and can we show why? | The GAAP to SBA bridge by position, computed against filed impairment, and retained exports for the exact version that was issued. |
| Chief credit officer or portfolio manager | Which borrowers are slipping, and how close is each to its limit? | Agreement-defined tests with cushion, certificate mismatches, original breaches beside any waiver or cure, and stress scenarios kept apart from actuals. |
| Finance or operations lead | What is missing, and who is chasing it? | Due, missing and overdue packages, receipt states, reminders and escalation, and a review queue with independent approvals. |
| Valuation lead | Why did the mark move? | Proposed, administrator and approved marks side by side, quarter-to-quarter explanations, loan schedules and dated equity returns. |
Also running a BDC or a direct lending fund? See how the same record serves them.
Platform
One Foundation. Four modules.
Every deployment starts with the Foundation. Add the modules your fund needs; Modules 3 and 4 make up the SBIC edition.
RequiredFoundation
Collection and reviewed intake. Agreement-defined covenants with amendments, waivers and cures. Monitoring, watchlist and stress scenarios. Independent approval, quarter locks and reviewed corrections. Audit export and retention.
Equity and warrants
Ownership, cost, proceeds, distributions and event history. MOIC, supported warrant intrinsic values and dated equity XIRR from sourced cash flows.
SBA valuation and reconciliation
GAAP and cost bridged to SBA value by position and fund. Collection-in-doubt tests, depreciation and a tie to the impairment calculation.
Fund oversight and reporting
Capital impairment against the filed figure, limits and headroom. Closing records, Form 1031 preparation, Form 468 support, partner capital and board packs.
What you hand over at quarter-end
| Output | Contents | From |
|---|---|---|
| Credit review | Covenant results, relief, headroom and review evidence | Foundation |
| Loan schedules | Cash, PIK, OID, fee and carrying-value calculations | Module 1 |
| Valuation support | Approved marks, evidence and quarter-to-quarter explanations | Module 1 |
| Equity ledger | Ownership, cost, marks, MOIC and dated equity XIRR | Module 2 |
| GAAP to SBA bridge | Position and fund reconciliations with explicit tie checks | Module 3 |
| SBIC workpapers | Capital impairment worksheet, financing forms and Form 468 support | Module 4 |
| Board and fund packs | Partner capital, leverage and investment schedules in one approved version across app, workbook and PDF | Module 4 |
Controls
Built to be checked by someone else.
The controls sit inside the workflow, so the record is already complete when the quarter closes. A workbook cannot show who typed a number or whether this quarter’s formula matches last quarter’s.
Missing stays missing
An unknown figure is never shown as zero, so a gap never reads as compliant.
Not tested beats a guess
Without every input a definition needs, the result says Not tested.
No one approves their own work
Whoever prepared an upload, calculation or mark cannot confirm it, whatever their role.
The issued quarter is never overwritten
Corrections create a reviewed replacement. The original pack, workbook and PDF stay retrievable.
The audit history records who changed what, when and why, with source and version references. Export the scoped history as CSV or JSON for your auditor or an SBA examination.
Your options
Three ways to run the quarter.
Most funds choose between keeping the current process and renting a platform. NSight is a third option: software built on your book that your fund keeps.
| Workbooks and outsourced files | Subscription platform | NSight | |
|---|---|---|---|
| Where the logic lives | In workbook formulas and the people who maintain them | In the vendor’s product, configured to your fund | In versioned code, deployed for your fund |
| Covenant testing | Certificate figures, copied | Varies by product; often monitoring and alerts | Recomputed from the agreement, certificate kept beside it |
| SBA basis, impairment and SBA forms | Administrator workpapers the GP reviews | Usually outside a general private credit platform | Built in: bridge, impairment, Form 468 support and Form 1031 preparation |
| Tracing a number | Rebuilt from email and files | Depends on the product | Source page, rule, inputs and approver on every number |
| How you pay | Staff time and service fees, every quarter | Annual subscription, often by seat, module or assets | One-time build, optional monthly service |
| If you stop paying | The process stops with the people | Access usually ends with the contract | You keep your version and your data |
| Your administrator | Prepares and files | Continues | Continues to prepare and file. NSight is your review layer. |
A general description of each approach, not a review of any named vendor.
Ownership
Built on your book. Yours to keep.
A one-time build for your fund’s dedicated instance, then an optional monthly service. No seat licences, and your right to use your version continues if a service plan ends.
What the build includes
- A dedicated instanceDeployed in your cloud or ours. Your data is never pooled with another fund’s.
- Configuration to your fundYour credit agreements, instruments, valuation policy, review roles and reporting outputs.
- Your book, loadedExisting credits onboarded, with the prior quarter in place so movements are real from day one.
- A handover your team can runTraining to add new credits, client IT responsibilities and a rehearsed backup and restore runbook.
Target production delivery is within 90 days of receiving complete credit documentation and data.
Optional monthly service, after go-live
Maintain
Security, dependency maintenance, defect correction, controlled releases and technical support.
Managed Care
Maintain, plus regulatory and accounting change management, calculation validation, quarter-end help and a named service owner.
Managed Operations
Managed Care, plus recurring intake checks, exception triage, administrator coordination and reporting-pack preparation.
Managed hosting is available. Service scope is agreed for your engagement, and your team keeps every approval.
How an engagement runs
- 01Scope
Credits per fund, vehicles and leverage, instrument types, who prepares and who reviews, and your valuation policy.
- 02Intake
Credit agreements, servicing statements, borrower financials, your position ledger, filed Schedule 1 and valuation memos.
- 03Pilot, optional
Three credits across two quarter-ends, including one on watch. Every difference from your filed numbers is shown with its rule and page.
- 04Full book
Every active credit and vehicle, with the prior quarter loaded so movements are real from day one.
- 05Handover
Upload training, client IT responsibilities, a rehearsed backup and restore runbook, and recorded acceptance in your environment.
BDCs and lenders
Built for SBICs. Ready for the rest of your platform.
Many SBIC managers also run a BDC, a direct lending fund or a mezzanine fund beside the licensed vehicle. The Foundation and Modules 1 and 2 serve those funds today, on the same reviewed record.
BDCs with SBIC subsidiaries
The SBIC subsidiary gets SBA valuation, capital impairment and Forms 468 and 1031 support. The parent’s credit book runs on the same Foundation, so one record feeds both.
BDCs
Agreement-defined covenants, loan schedules with PIK and OID, marks and position-level evidence. BDC tests such as asset coverage with the SBA debenture exclusion, the 70% qualifying-asset test and RIC diversification are scoped with each client.
Direct lenders and mezzanine funds
Covenant review, loan valuation and accounting, and equity and warrants for funds that co-invest. No SBA modules and no SBA vocabulary in the way.
Tell us which vehicles you run and we will scope the modules that apply to each.
Next step
Start with a quarter you’ve already closed.
You already know the answers, which makes it a fair test. Choose a few borrowers and fund workpapers, and we reproduce them in NSight in front of your team.
Talk to the NSigma team
info@nsigma.io
- 01Agree the scope
Pick the borrowers and workpapers to reproduce, including one that is delinquent or on watch.
- 02Compare the results
Check every figure against your own schedules. You decide which differences are corrections and which are explanations.
- 03Decide the next phase
Agree acceptance criteria, modules and deployment, or stop there.
Acceptance is agreed in advance: input coverage, calculation tolerances, independent approvals, missing-evidence handling, issued history and reporting.
Before we talk
Questions CFOs ask first.
Scope, stated plainly
NSight does not replace the administrator’s general ledger, provide an LP portal or an arbitrary waterfall and carry engine, decide eligibility automatically, or certify or file SBA returns. Form 468 outputs are preparation support.
Supported instruments, conventions and methods are listed in the published scope matrix.
Does NSight replace our fund administrator?
No. The administrator keeps the general ledger, NAV and the filings. NSight is your evidence and calculation layer: it reconciles administrator imports, compares computed figures with filed ones and shows the basis for every difference.
Is it a SaaS subscription?
No. NSigma builds a dedicated instance for your fund, in your cloud or ours, for a one-time build fee. Your right to use that version continues if a service plan ends. Hosting, maintenance and support are optional and scoped separately.
What exactly does the extraction model do?
It reads borrower documents and credit agreements and proposes figures and terms, each with its source page. An analyst confirms or corrects every one. All calculations are deterministic code and rerun from stored inputs without calling a model.
Where does our data go during extraction?
In a client deployment, extraction can run through a model account in your name or inside your own tenancy, or be switched off in favor of manual mapping. Each deployment is a dedicated instance, and its data flows are documented for your security review.
Is it only for SBICs?
SBICs come first, and the SBIC edition is where NSight goes deepest. The Foundation and Modules 1 and 2 also serve BDCs, direct lenders and mezzanine funds. BDC-specific tests such as asset coverage and the 70% qualifying-asset test are scoped with each client.
Does NSight file Form 468 or Form 1031?
No. Form 468 outputs support preparation. Form 1031 exports are independently approved and retained. Signing and SBA submission stay with you or your filer, and NSight records Approved, Exported, Signed and Submitted as separate states.
How long does deployment take?
The target is production delivery within 90 days of receiving complete credit documentation and data. Most of that time depends on how quickly documents and prior-quarter data arrive.
How do we evaluate it?
Choose a completed quarter and a small set of borrower packages and fund workpapers. We agree the scope and acceptance criteria, reproduce the outputs, and compare them with your schedules line by line.