A Focus on Valuation: Private Credit vs. Public Credit
Private credit and public credit are often viewed as similar asset classes, yet they have distinct characteristics and differences resulting in unique valuation considerations. Understanding the differences between private credit and public credit is crucial when valuing these securities. In this paper, we will discuss:
- The Rise of Direct Lending
- Direct Lending Features
- Valuation Considerations for Private Credit
...among other key topics related to private credit valuation.
Houlihan Lokey has extensive relationships and has worked with some of the world’s leading asset managers. Houlihan Lokey is the independent valuation provider for more than 35 BDCs and direct lending funds, spanning assets in excess of $600 billion. At our firm, we obtain real-time market information from our leading debt capital markets team and conversations with numerous direct lending investors. Houlihan Lokey publishes its Private Performing Credit Index, which is drawn from the firm's extensive dataset of more than 7,200 private loan valuations.
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