Pricing deals in Private Credit

If you have access to TheLeadLeft, they typically track average deal margins in their weekly report.

But yea, private debt is much more difficult to just index given all of the nuances (deal sizes, OIDs).

i'm at an opportunistic credit shop at a BB, and one benefit of having an in-house DL platform is being able to leverage the teams that prices paper on a daily basis - the syndicate desks and risk teams all have models based on certain risk/return inputs that we use then use to negotiate floors/flex on term sheets with sponsors and what not.

Given the inherent nature of private / direct deals that aren't broadly syndicated loans, there is less visibility into this market on the pricing side (e.g., there is less liquidity on the name, the paper doesn't actively trade, there are typically 5 lenders in any one deal, etc.). As such, it is tough to line up market expectations for any one deal without the benefit of actual recent deal / transaction comps (e.g., by industry, deal size, leverage / structure, etc.). PitchBook, LCD, and Refinitiv actually do publish really good data on pricing trends on a quarterly / YoY basis, but nothing will replace actual comps to drill into the specifics of a transaction based on recent precedent. Sorry if this isn’t too helpful…