Private Credit Origination Startup

Your thesis is intriguing and aligns with some of the most helpful WSO content on private credit and origination. Here's a breakdown of your two asks:

1. Tearing the Thesis Apart

• Fragmentation of Debt Brokers: You're spot on about the fragmentation in the debt brokerage space. Many WSO threads highlight how middle-market private credit is underserved and lacks streamlined tools. Offering free software to brokers could be a strong value proposition, especially if it genuinely simplifies their workflow.
• AI Matching Against Fund Mandates: This is innovative, but execution is critical. Funds will likely scrutinize the accuracy of your AI in matching deals to their mandates. If the matches are off, it could erode trust quickly. You'll need to ensure your AI is robust and adaptable to nuanced fund requirements.
• "Pay to See the Deal" Model: This could be a double-edged sword. Based on WSO discussions, MM credit funds are often inundated with deal flow, so paying to unlock deals might not appeal unless your platform consistently delivers high-quality, pre-vetted opportunities. Funds might prefer a subscription model or a success-based fee tied to closed deals.
• Disruption in Origination: Many WSO contributors agree that origination is ripe for disruption, but it's also relationship-driven. Your platform will need to demonstrate that it can enhance—not replace—the personal connections that drive deal flow in private credit.

2. Feedback from MM Credit Shops

• LA/NYC MM Credit Shops: Your target markets are well-chosen, as both cities are hubs for private credit activity. To gain traction, consider reaching out to funds mentioned in WSO threads, such as Owl Rock, KKR's credit arm, or Madison Capital. These firms are known for their activity in the middle market and could provide valuable feedback.
• Comp Access for Feedback: Offering free access in exchange for feedback is a smart move. It lowers the barrier to entry and demonstrates confidence in your platform. Be prepared for tough questions about data security, deal quality, and the scalability of your model.

Final Thoughts

Your idea has potential, but its success will hinge on execution, particularly in delivering high-quality matches and building trust with both brokers and funds. If you can address these challenges, your platform could fill a significant gap in the market.

Sources: Q&A: Non-Bank Commercial Lending, How do top credit shops compare to MM/LMM buyout?, Private Credit / Direct Lending Comp, Why do MM IB shops get trashed on so much?, Is the Multi Manager HF Experience Worth It?