Valuation in Private Credit Instruments

As global private credit expands beyond $2 trillion AUM, the market is facing a critical inflection point. Rising default metrics, an influx of PIK (Payment-in-Kind) conversions, and heightened fund redemption pressure have placed valuation transparency directly at centre stage. 

In our latest publication, AVISTA Group breaks down:

•   The Valuation Dilemma: Why Level 3 fair value marks have transitioned from a back-office accounting exercise to a core fiduciary duty. 

•   DCF & Discount Rate Methodology: Step-by-step application of the build-up approach—factoring in risk-free rates, credit spreads, country risk, and illiquidity premiums. 

•   Key Valuation Considerations: Navigating structural protections, PIK amendments, and technology sector exposures. 

•   Governance Best Practices: 5 actionable steps to ensure valuation models withstand auditor and Limited Partner (LP) scrutiny. 

As private credit matures into a pillar of global capital markets, independent, defensible valuations are essential to maintaining investor confidence, strengthening risk management, and ensuring regulatory compliance. 

Read the full article on our website