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Private DEBT
In recent years, private debt has become an important investment vehicle for investors. For investors and investee companies, private debt is an excellent way to achieve their return and growth objectives.
Valuing private debt can be challenging. The complexity depends on both the terms negotiated and the credit quality of the borrower.
Valuing private debt can be challenging. The complexity depends on both the terms negotiated and the credit quality of the borrower.
Asset Coverage
Value & Risk covers a wide range of private debt instruments, from standard to highly complex debt investments. Examples include:
Infrastructure loans
Asset-based lending
Renewable energy financing
Valuation framework
We generally use industry best practice to value private debt investments. Depending on the complexity of the instrument, we would analyse the credit risk of the instrument, its market risk and its cash flow structure. We would then use an adjusted cash flow methodology to simulate future cashflows, adjusted where appropriate for options or other factors that may affect the price of the instrument.
