That’s the tricky bit. You have to value it either intrasecally either through comparable. There is very little content out there explaining how. Even asset managers themselves got no idea how it is done. In my opinion it should be valued at par unless written down. But the MtM sounds fancy in front investors. Big mistake in my opinion.
These comments may not age well for Mr. Easterly when all is said and done. Private credit has a pretty small market weighted sample size, and just because you’re “private credit” doesn’t mean you can’t have a business model problem that bankrupts you and your investors.
Clearly this man is preaching for his parish ! The key difference between private equity and hedge funds, is the valuation of their assets ! Hedge funds assets are evaluated based on their market value ! The evaluation of private equity assets are based on the evaluation of the main partners !
How exactly does he "mark to market" assets that do not trade on any market?
That’s the tricky bit. You have to value it either intrasecally either through comparable. There is very little content out there explaining how. Even asset managers themselves got no idea how it is done.
In my opinion it should be valued at par unless written down. But the MtM sounds fancy in front investors.
Big mistake in my opinion.
@@abdeldu133 seems wild to me that he gives that as an example of why his sector is "less risky."
These comments may not age well for Mr. Easterly when all is said and done. Private credit has a pretty small market weighted sample size, and just because you’re “private credit” doesn’t mean you can’t have a business model problem that bankrupts you and your investors.
This will age like sushi in a dumpster in summer.
Clearly this man is preaching for his parish ! The key difference between private equity and hedge funds, is the valuation of their assets !
Hedge funds assets are evaluated based on their market value !
The evaluation of private equity assets are based on the evaluation of the main partners !