Going to be interesting to follow the trends in valuation for these non-traded BDCs. The amounts being raised are staggering. I wrote about it in my piece last week on the democratization of private credit.
Wow, Leyla. Even honest persons of integrity cannot think straight when they have strong incentives toward some outcome. Our emotions are just too involved in the thinking process. I see no reason to believe evaluations by the fund or manager of those Level 3 assets.
Going to be interesting to follow the trends in valuation for these non-traded BDCs. The amounts being raised are staggering. I wrote about it in my piece last week on the democratization of private credit.
It’s all good as long as the loans are “performing” (hello, PIK) and no one is forced to sell the assets.
Will be interesting how they all generate liquidity to investors if there is a sudden increase in redemption requests..
Wow, Leyla. Even honest persons of integrity cannot think straight when they have strong incentives toward some outcome. Our emotions are just too involved in the thinking process. I see no reason to believe evaluations by the fund or manager of those Level 3 assets.
Thanks for the look under the covers.
Quite incredible, isn't it? And this is the case for the majority of the $3T private credit universe.