In “Money Managers Hire Investigators to Find Private Asset Values” (Bloomberg, 28 March 2024), Jason Wright comments on how the lack of investor faith in private market asset values has led to more and more money managers hiring investigators for on-the-ground information to help them learn more about the firms they’re lending to or invested in, as well as value underlying collateral.
One focus of this kind of investigation was mentioned in a 4 April Bloomberg article, “For Private Credit Investors, a Whodunit With a Twist,” which quoted Jason’s comments in the original article when introducing a key question answered by such inquiries: “What’s the true value of the debt here?” As the article explains, “The important—and hard—thing for fund investors is to spot any manager that is consistently aggressive in underestimating either risk and so overvalues their loans.” Hiring an investigator to track the performance of a private credit fund can help mitigate that element of uncertainty.
Read the articles:
- “Money Managers Hire Investigators to Find Private Asset Values” (Subscription required. Read a pdf version of the article.)
- “For Private Credit Investors, a Whodunit With a Twist”