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A comprehensive guide to understanding and managing OID (Original Issue Discount), Effective Interest Rate (EIR), Restructure scenarios, and troubleshooting tips in Hypercore.

This discount is amortized over time and contributes to the 

 — the true cost of the loan, including fees and discounts.

In Hypercore, the system automatically calculates:

 – Derived from the loan’s cash flow structure.

 – The total discount amount to be amortized over the loan’s life.

 – The portion of OID amortized as income/expense in each period.

2. What is Effective Interest Rate (EIR)?

 is the actual annual rate of return (or cost) on a loan, taking into account the timing and amount of all related cash flows, fees, and discounts. It often differs from the stated interest rate because it reflects the true economics of the transaction.

 feature that freezes OID calculations up to a certain date to protect reporting accuracy.

 OID values are automatically locked for a configurable number of days (based on client preference), depending on the account's configuration. This is defined in the 

 You can update the Lock Date field manually if you wish to freeze calculations through a different cutoff date.

💡 Locking is based on financial reporting best practices and ensures that past values used in finalized reports remain unchanged, even if loan terms are later adjusted. 

 Even if a lock is in place, you can still use the OID Restructure feature (see next section) to apply updated calculations from a designated 

 forward. This allows for forward-looking accuracy while preserving past reporting.

When historical loan data has changed (e.g., due to amendments, rate changes, or fee adjustments), OID calculations may become inaccurate.

 recalculates OID values according to the current loan structure, treating the present terms as if they had always been in effect. The calculation also incorporates previous cash flow data.

Use the Restructure feature when you want to allow the system to override previously locked OID values. This is particularly useful in scenarios where loan data wasn’t updated in a timely manner  - for example, if the user continued managing loans outside of Hypercore (e.g., in Excel) and only later imported or updated the loan data in the system.

While changes such as interest rate updates, OID component edits, or historical uploads may prompt recalculations, a restructure is not always required for those actions unless the goal is to retroactively reflect them in locked period.

Set the Restructure Date, which determines when the system will begin recalculating OID based on previous changes

Automates recalculations instead of requiring manual entries

, so even if OID values are locked, a restructure will still recalculate forward from the specified restructure date

OID & Effective Interest Rate Guide

Hypercore calculates three key performance indicators (KPIs) for loans to help lenders assess investment performance: 

 (Total Value to Paid-In, also known as Investment Multiple), and 

 (Distributions to Paid-In, also called Realized Multiple). Each KPI is calculated in two variants: 

 (based on actual transactions to date) and 

 (including future projected cash flows).

Current (Realized) vs Expected Calculations

: Based on actual transactions that have occurred up to today, plus current outstanding balances.

: Include both actual transactions and future expected cash flows based on the loan schedule.

When equity investments are associated with a loan, Hypercore includes equity transactions and valuations in KPI calculations. This provides a comprehensive view of total investment performance.

IRR measures the annualized rate of return on an investment, accounting for the timing of cash flows.

: Calculated using the XIRR function on actual cash flows to date plus current outstanding balance.

All actual disbursements (negative cash flows)

All actual repayments (positive cash flows)

Current outstanding balance as of today (positive cash flow)

Equity transactions (buys as negative, sells/returns as positive)

Loan disbursement: -$100,000 (Jan 1)
Repayment: +$20,000 (Mar 1)
Repayment: +$25,000 (Jun 1)
Current outstanding: +$60,000 (today)

IRR Current = 12.5%

: Calculated using the XIRR function on actual cash flows plus future expected cash flows.

Future expected repayments from the loan schedule

Future expected disbursements (if applicable)

Equity transactions (actual and expected)

Actual disbursement: -$100,000 (Jan 1)
Actual repayments: +$45,000 (to date)
Expected repayments: +$65,000 (future)

IRR Expected = 15.2%

TVPI (Total Value to Paid-In, also called Multiple on Invested Capital - MOIC)

TVPI measures the total value returned relative to the total amount invested, including both realized and unrealized gains.

TVPI Current (also called Gross Realized Multiple)

: (Total Payments + Outstanding Balance + Equity Values) ÷ Total Disbursements

: Principal, interest, and fees received to date

: Current principal, interest, and fees outstanding

: Current market value of equity holdings

Total disbursed: $100,000
Total payments received: $45,000
Current outstanding: $60,000
Equity current value: $5,000

TVPI Current = ($45,000 + $60,000 + $5,000) ÷ $100,000 = 1.10x

: (Total Expected Payments + Equity Expected Values) ÷ Total Expected Disbursements

: All actual and future expected payments

Total disbursed: $100,000
Total payments (actual + expected): $110,000
Expected equity income: $10,000

TVPI Expected = ($110,000 + $10,000) ÷ $100,000 = 1.20x

DPI (Distributions to Paid-In, also called Realized Multiple)

DPI measures the ratio of total distributions received to the total amount invested, focusing on realized returns.

Total disbursed: $100,000
Total payments received: $45,000
Equity income: $5,000

DPI Current = ($45,000 + $5,000) ÷ $100,000 = 0.50x

All calculations are performed in the loan’s target currency

Equity transactions are converted to the loan currency using exchange rates as of the transaction date

Current equity values are converted using current exchange rates

If a loan is terminated early (early redemption or write-off), the system uses current calculations instead of expected calculations

This ensures KPIs reflect actual performance rather than projections

IRR calculations include fees by default; this can be configured.

Outstanding balance calculations include principal, interest, compounding interest, and fees

: Based on loan schedule rows (disbursements, repayments, expected transactions)

: From equity transactions, valuations, and expected transactions

: Aggregated values from loan schedule summaries

: Shows realized vs projected performance

: Shows realized vs potential total returns

: Shows realized vs projected cash returns

: Equity can significantly boost total returns

Below are common KPI issues, symptoms, causes, and solutions to help resolve inconsistencies in your metrics.

If your KPI values appear incorrect or inconsistent, here are some quick steps to help diagnose and resolve common issues:

: Download the amortization schedule and use Excel's XIRR function on disbursements and repayments to verify calculations. Ensure equity cashflows are included if applicable.

: Manually sum repayments and equity cashflows. Use the formulas in this guide to confirm expected results.

: Check that all equity transactions, valuations, and expected events are correctly recorded and in the correct currency.

 Contact Hypercore support for assistance—our team can help verify data integrity and ensure the calculation setup is correct.

: IRR appears unusually high (>9999%) or negative

Insufficient cash flow data for XIRR calculation

All cash flows in same direction (all positive or all negative)

Verify loan has both disbursements and repayments

Ensure currency conversion rates are available

Review equity transaction data if applicable

Large outstanding balance (TVPI includes unrealized value)

Expected vs current calculation differences

This is normal - TVPI includes unrealized gains while DPI only includes realized cash

Check equity valuations and expected income

Equity transactions not properly linked to loan

Verify equity is properly associated with the loan

Check currency conversion rates for equity transactions

Review equity transaction data for completeness

: KPIs seem incorrect for multi-currency loans

Missing exchange rates for transaction dates

Incorrect currency conversion calculations

Verify exchange rates are available for all transaction dates

: KPIs show null values or calculation errors

Loan KPIs Calculations

 in Hypercore allows you to model the capital structure behind your loans, tracking which funds or entities are providing capital, how they should be repaid, and what returns they are entitled to.

Handling debt sales and internal expenses

 represents the investor, lender, or capital pool that provides funding for a loan. You can think of this as the actual “funder”: whether it’s your firm, a syndicate partner, or a third-party fund.

A profile (name, banking details, legal docs)

Once created, you can now use this entity to fund loans.

After your loan is set up and your funding entities are created, you’ll now assign how the loan is funded via 

Funding Source = Funding Entity + Loan + Allocation Terms 

You can add as many funding entities as needed to cover the full loan.

For each funding source, define how returns will be shared:

 (default): Based on capital share or commitment share

: Accrue interest daily based on borrower terms (ideal for nuanced returns)

If you're using a fixed rate or non-prorata returns, Hypercore will automatically calculate the investor’s specific interest.

When a borrower pays a fee, you can decide how it's split across funding sources:

Toggle “Allocate to funding sources” ON

Useful for origination, exit, or miscellaneous borrower-paid fees.

Assigning the Servicer (Margin Recipient)

 is the entity managing the loan servicing (usually yourself) and usually receives any remaining interest, fees, or margin not passed to other investors.

Add your entity with an allocation (even if it is 0%)

Toggle “Servicer” and “Receives Margins” (optional) on

This entity will now capture the residuals automatically

This is useful if you're earning the spread between what the borrower pays and what the funders receive.

Each funding source has a dedicated schedule, just like the borrower:

Displays interest, principal, and fees from the perspective of the investor

Automatically updates based on the loan’s performance and terms

No need to manually record repayments, returns accrue automatically based on the terms set.

To reflect a change (e.g., increased commitment or new rate):

Edit fields like commitment, interest, toggles, etc.

Each new term set maintains historical integrity.

To transfer a portion of one entity’s investment to another:

You may override interest/principal split manually if needed.

Set up internal fees between funding entities that are useful for:

Note that these fees are to reflect any cash transactions solely between funding entities and/or servicer.
These do not reflect on the borrower’s loan schedule in any way.

 on the funding entity that will receive the fee

Define the fee amount (e.g., $1,000 per repayment)

These appear on the funders’ schedules and affect net cash flow.

Automatically on major loan actions (repayments, early redemptions, fee events)

Each funding entity’s profile gives you full visibility:

, fund performance summaries, and reporting

Use servicer/margin toggles to capture margin and residuals

Start simple (pro-rata) before modeling custom returns

Comment and save debt sales for audit clarity

Templates for recurring structures are coming soon!

Advanced Loan Topics

OID & Effective Interest Rate Guide

Loan KPIs Calculations

Funding Sources Module: Overview & Step-by-Step Guide