Private Credit Funds, Vehicles and Investors

1.1 Closed-end drawdown funds Free preview

How a closed-end drawdown fund works for credit investors, what LPs gain and give up, and the Hollin Bay vehicles that run through PC203.

1.2 Evergreen and semi-liquid funds

Funds with no fixed end that take subscriptions and offer limited redemptions at NAV: why managers and investors like them, and the trade-offs.

1.3 BDCs: public, non-traded and private

What makes a business development company different, how listed, non-traded and private BDCs compare, and why listed BDCs trade away from NAV.

1.4 Separately managed accounts and co-investments

How SMAs give large investors their own guidelines, fees and reporting, how co-investments sit alongside a fund, and when each makes sense.

1.5 Middle-market CLOs and rated note feeders

How a CLO funds a pool of loans with rated debt tranches and equity, what the equity earns and loses, and how rated note feeders package fund interests.

2.1 Management fees on committed vs. invested capital

Why the fee base matters as much as the rate: fees on committed vs. invested capital in Fund IV, plus fee offsets, fee breaks and fees on leverage.

2.2 Incentive fees, hurdles and catch-up

How the same portfolio nets LPs different returns under a fund's carried interest and a BDC-style income fee, and how hurdles and catch-ups change that.

2.3 Fund-level leverage

How borrowing at the fund level lifts returns on equity, the loss rate at which it stops helping, and why fees on gross assets matter to LPs.

3.1 Yield, IRR and MOIC

Why a fund's portfolio yield isn't what LPs earn, and how IRR, MOIC and DPI measure a credit fund's returns from the LP's own cash flows.

3.2 Loss rates, realized and unrealized

How to measure a credit fund's losses, why realized losses alone can flatter a young fund, and which early signals point to losses to come.

3.3 Benchmarks and how to use them

Comparing a private credit fund with public indices, direct lending indices and peers, adjusting for leverage, fees, vintage and seniority.

4.1 Where private credit sits in a portfolio

Why institutions allocate to private credit, which bucket it sits in, and how commitment pacing helps a plan reach and hold its target.

4.2 Manager due diligence

What LPs examine before committing to a private credit manager, the questions to ask, the red flags to watch for, and operational due diligence.

4.3 Insurance investors and capital treatment

Why insurers invest in private credit, and how capital rules can make the same loans cost very different amounts of capital depending on the wrapper.

5.1 Vehicles for individual investors

How individuals reach private credit through non-traded BDCs, interval and tender-offer funds and feeder funds, and what advisers should check.

5.2 Liquidity management and redemption limits

How semi-liquid funds offer limited liquidity through redemption limits, pro rata fills and liquidity sleeves, and what investors should expect in stress.