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Due Diligence of SME Lender
The client was interested in acquiring a specialist UK SME lender
Some light portfolio analysis had been provided but it didn’t provide the investor with sufficient information to understand recent trends in the business and identify areas of concern
Vestigo were engaged to carry out detailed data analysis to answer these questions
The first task was to specify a data request of required fields and history to complete the analysis
Once this had been provided, the team quickly derived key variables such as income, arrears, defaults and losses and started building out historical trends
To identify areas of concern, the team employed machine learning techniques, which highlighted segments of recent lending with significantly higher loss rates
A final report was provided to the client detailing the analysis and key findings from the work
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