These materials focus on diligence practices and collateral controls in senior secured lending transactions. This includes leveraged lending of course - both cash flow loans and OpCo ABLs - as well as fund level ABLs, including CLOs and warehouse financing. Our goal has been to provide a foundational offering that gives a detailed picture of the robust diligence practices and collateral controls included in secured lending while distinguishing where practices differ across facility types. These materials are not designed to be comprehensive but we do intend for them to realistically represent market practice.

This document (“Collateral Controls in Senior Secured Leveraged & Structured Lending: A Comparison”) is a side-by-side comparison of how collateral controls operate across three facility types — cash flow loans, operating company-level asset-based loans, and fund-level asset-based loans — covering loan sizing, cash and lockbox mechanics, borrowing base and availability controls, financial covenants, field examination practices, perfection and priority of security interests, and enforcement.

The other document (“Diligence in Senior Secured Leveraged & Structured Lending”) provides a narrative overview of the due diligence process lenders typically conduct in lending transactions, covering borrower corporate structure and governance, credit and financial analysis, collateral diligence and perfection, operational control of collateral and cash flows, and regulatory compliance and ongoing monitoring.

The two are intended to complement each other. The comparison table provides a detailed, facility-specific breakdown of collateral mechanics, while the memo offers a complementary, narrative-level overview of the broader diligence process.