Private Performing Credit Index—Q1 2025
Introduction
Houlihan Lokey, Inc. (NYSE:HLI) is a leading global investment bank with expertise in mergers and acquisitions, capital solutions, financial restructuring, and financial and valuation advisory. Houlihan Lokey regularly values instruments in many of the least visible asset classes, particularly private credit. The Houlihan Lokey Private Performing Credit Index (PPCI) is derived from our extensive dataset of private credit valuations.
The PPCI provides a window into the universe of performing private credit loans, of which the data is generally inaccessible, and enables comparisons to investment portfolios or other indices to inform discussions of market dynamics between ourselves and our clients. The PPCI is computed using weighted average (based on aggregate principal balance) yields of a subset of private loans valued by us. The yields represent the implied internal rates of returns (IRRs) based on our fair value estimates of each underlying loan. We also calculate other data, including spread and percentage of par, and have numerous other studies and observations available in our Insights section on HL.com.
As of Q1 2025, the loans in the PPCI had a weighted average:
Price of 98.74%
Yield of 10.58%
Spread of 6.45%
Further Information or Analysis
To receive further information or discuss Houlihan Lokey’s PPCI, please contact our Portfolio Valuation team:
Houlihan Lokey’s Portfolio Valuation and Fund Advisory Services practice is a leading advisor to many of the world’s largest asset managers, who rely on its strong reputation with regulators, auditors, and investors; private company, structured products, and derivatives valuation experience; and independent voice.
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