Matt Levine’s Money Stuff: Private Credit Is Not on Sale

Private credit

The simplest model is that the typical private credit fund is worth, say, 80% of what its managers say it is worth. If you are an investor in a private credit fund, and you get a statement saying “the net asset value of this fund is $100 per share,” that means that the market value of the fund — the amount that a willing arm’s-length buyer would pay you for it — is about $80 per share. Give or take; no science to that number; Boaz Weinstein will pay you $65. But something less than $100, anyway.

There are ...