KBRA Affirms the Notes Issued by White Rose CFO 2023 Holdings, LLC
12 Dec 2025 | New York
KBRA affirms its outstanding ratings on the Class A Notes (the “Notes”) issued by White Rose CFO 2023 Holdings, LLC (in such capacity, the “Issuer”). The transaction is a LP collateralized fund obligation (LP CFO). The affirmation is based on KBRA’s analysis of transaction performance to date.
Since issuance, the portfolio composition is largely unchanged, and the portfolio Net MOIC is 1.10x on a weighted average basis from issuance through July 31, 2025. There have been no material changes in the allocations to the underlying LP interests comprising the portfolio and the LTV on the Rated Notes remains relatively in line with issuance.
Key Credit Considerations
Asset Coverage
At issuance, Asset Coverage for the Class A Notes was 206.2% (48.5% LTV). As of April 30, 2025, Asset Coverage remains largely unchanged at 202.1% (49.5% LTV, as shown in the Liability Structure). In the prior surveillance, asset coverage was 203.5% (49.1% LTV).
Transaction Structure and Key Protective Features
Liquidity Reserve Account: At issuance, $16 million was deposited in the Liquidity Reserve Account, with a requirement to maintain an ongoing balance equal to 4% of the aggregate outstanding amount of the Class A Notes. Proceeds in the Liquidity Reserve Account are invested in certain Eligible Investments as further described in this report. The Liquidity Reserve Account is intended to be used to replenish the Payment Account to cover distributions shortfalls and Noteholder interest on a timely basis. Since issuance, the balance of the Liquidity Reserve Account has been stable and slightly above the target amount of $16 million. The slight increase in the balance of the Liquidity Reserve Account is attributed to the interest earned from the Eligible Investments.
Capital Call Mechanics: Prior to any permitted distributions to the holder of the Issuer LLC Interest, available proceeds will be used to replenish the Issuer Account in an amount sufficient to satisfy any capital call associated with the White Rose Funds due and payable on such Distribution Date and to maintain a Note LTV that is less than or equal to the “Target LTV Ratio.” To the extent available proceeds cannot sufficiently fulfill the capital call obligations associated with the White Rose Funds, Thrivent is required to fund the difference, subject to an aggregate cap of $128 million. To date, Thrivent has not been required to fund any capital calls; all capital call obligations associated with the White Rose Funds have been fully satisfied through available proceeds on deposit in the Issuer Account, Collection Account, and Liquidity Reserve Account. In KBRA’s view, the significant reliance on Thrivent to satisfy the capital call requirement is a risk that is mitigated by the Manager’s credit quality and its capability to successfully manage short-term and long-term liquidity needs.
Amortization Profile and Distribution Conditions: Prior to the Scheduled Maturity Date, repayment of the Notes is governed by a targeted amortization schedule which, subject to sufficient available distributions, requires the repayment of 6.25% of the initial principal balance per quarter (“Target Amortization Schedule”). Any shortfalls of this targeted amortization schedule will become due and payable in subsequent quarterly payment periods along with an additional 6.25% of the initial Notes balance. Following the Scheduled Maturity Date, all distributions after the payment of Note interest will be used to repay the Notes until paid in full (the “Turbo Amortization Period”).
In addition to the satisfaction of the Targeted Amortization Schedule described above, there can be no distributions to the Issuer LLC interests until Notes’ LTV is in compliance on a pro forma basis and any capital calls that are due have been paid.
Exposure to Diversified Portfolio
Noteholders benefit from collateral that is diversified across GP, vintage, and asset concentration. Since issuance, the diversification of the portfolio has remained largely unchanged. As of July 31, 2025, the portfolio consisted of 70 LP interests managed by 56 unique GPs across eight investment strategies and nine annual vintages, unchanged since issuance.
Portfolio diversification is measured by the inverse of the Herfindahl-Hirschman Index (“1/HHI”). The HHI is calculated at the level of the LP Interests, GP Interests, and Top 10 Funds by summing the squares of each of those values, as a percentage of total exposure. Lower outcomes represent a higher concentration, and higher outcomes represent a lower concentration within a portfolio.
Until February 2026, the Asset HoldCo may acquire additional LP interests in White Rose Funds subject to certain criteria further described in the report. Additionally, each White Rose Fund may exchange all or any portion of an Underlying Fund Investment for an interest in one or more investment vehicles (i.e., a Continuation Vehicle) which could have a negative impact on portfolio diversification. As a mitigant, new capital commitments into Continuation Vehicles will be subject to a $5 million limit per White Rose Fund and the restriction to invest after December 2033 (the tenth anniversary of the transaction). To date, there have been no investments in Continuation Vehicles, and the collateral pool has remained largely consistent with the initial portfolio composition.
Vulnerability to Uncertain Cash Flow
The payment of interest and principal to Noteholders depends heavily on realizations from private assets, which, as alternative investments, do not generate cashflow on a fixed schedule nor in predetermined amounts. This risk is, however, partially mitigated by the Liquidity Reserve Account and diversification of the underlying collateral.
Alignment of Interests
Thrivent retains 100% of the Issuer LLC interests, which represents 50% of the capital structure. In KBRA’s view, this economic structure creates a strong alignment of interests between the Noteholder and Thrivent.
Exposure to Third-Party White Rose LPs
As Manager of and the primary investor in the White Rose Funds, Thrivent is permitted to transfer all its interests in the White Rose Funds to third party investors. Given the named LP associated with the Underlying Fund Investments are the White Rose Funds themselves, a failure for such an investor to meet a funding obligation associated with one or more of the White Rose Funds, and therein resulting in a failure to meet a capital call associated with one or more of the underlying LP interests could result in negative economic outcomes for the Issuer. KBRA notes that this risk is mitigated in several ways, most notably i) the requirement of a minimum ‘AA’ rating on the third party credit quality by an NRSRO at the time of the transfer, ii) the requirement of the third party assuming the total Capital Call Commitment, iii) the ability and incentive for Thrivent to temporarily or permanently cover funding shortfalls from defaulting White Rose Fund LPs, iv) the ability in some cases to impose ramifications on defaulting LPs by looking through the White Rose Fund and solely to the defaulting LP, and v) Thrivent’s underwriting process for onboarding third party LPs which significantly weighs funding risk as a consideration.
Quality of Underlying Assets
The collateral consists of passive, illiquid investments in private capital funds. The valuation of these assets is highly complex and subjective. Mitigating this is a) the quality and track record of the third-party GPs managing these funds, and b) the vintage diversification of the collateral spanning across 10 years, which creates a more predictable realization profile and reduces valuation-related performance volatility.
Permitted Investment Dispositions
The Manager is permitted, on behalf of Asset HoldCo, to sell collateral up to an aggregate value no greater than 10% of the Adjusted Net Asset Value (NAV) at closing. Nevertheless, to the extent the Manager considers there is a reasonable risk of declining market value or, otherwise, the disposition would result in proceeds in excess of the fair market value, the Manager is permitted to sell an additional 25% of the Portfolio NAV as of the closing date. The foregoing limitations do not apply in the event of a redemption of the Notes in whole or in connection with a Liquidation Event or a sale to fund the payment of a Target Amortization Payment. All proceeds from such dispositions will be deposited into the Collection Account and applied in accordance with the Indenture. In KBRA’s view, this feature creates a significant reliance on the Manager’s discretion to sell or hold collateral. However, the ability to dispose of LP interests also provides the Manager with an alternate liquidity source to the extent it is needed to fulfill debt service obligations and minimize prolonged periods of illiquidity. To date, no investment dispositions have occurred.
Rating Sensitivities
Underperformance of Fund Collateral
Deterioration in portfolio valuation or persistently lower collateral cash flows than current forecast.
Funding of Capital Calls
Any delays or failures to meet capital calls on the collateral driven by exhaustion of available liquidity and / or a failure to fund from the Parent.
Exposure to Concentrated Collateral Pool
Exposure to a more concentrated collateral pool, either through a reduction in asset value or drawing of the Notes later into the transaction life, without a commensurate and significant deleveraging of the Notes.
Asset Coverage
Significant de-leveraging of the Rated Notes that decreases LTV coupled with stable or better than expected performance.
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