Qualitas reveals AI platform to support private credit investments
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The news: Private credit fund manager Qualitas has built an AI underwriting support platform. The platform aims to deliver investment assessment and decision making and analytical insights.
The context: During an investor call, Qualitas group managing director and co-founder Andrew Schwartz said the investment assessment process was labour-intensive and required significant time and resources.
“That combination of repeatable processes, large volumes of information, and detailed credit assessment makes our business particularly well suited to AI augmentation,” he said.
However, Schwartz noted decision making would stay with the investment team.
“To be clear, we’re not handing over decision making to machines, that’s not what we are saying. As ultimately, this is a business built on wisdom and careful human judgment,” he said.
“What we are discussing is how AI can make us a more efficient increased throughput by assisting us with vast data collection and triangulation of information we undertake.”
As Capital Brief reported in January, Qualitas hired chief AI transformation officer Michael Kollo to lead AI initiatives across the company.
During the call Kollo said per investment, the Qualitas team produced at least 160 documents and ran more than 370 verifications and checks. Then, the team extracted about 400 data points and metrics which the team calculated themselves.
Now, the team uses AI to check those figures and uses AI to recheck them.
“For a person pulling out 400 metrics and rechecking them relentlessly is painstaking and time consuming, but for AI systems it’s actually quite straightforward, and it can be done within the process itself,” Kollo said.
“So, we get a lot more faith and trust in the fact that those numbers are going to be correct and have the right form and structure, and so on.”
Qualitas chief financial officer Philip Dowman said as the platform was built in-house the company is achieving a faster time to benefit realisation.
Dowman said over the long term, Qualitas expected its AI initiatives to enhance its funds management margins and support sustained compounding earnings growth.
The source: ASX
