Private Credit: Equity Warrants
My understanding of equity warrants (stock options) in the private credit space is essentially a way to hedge your loan exposure with a PortCo. It seems that these warrants make up a small percentage of the overall return on a loan, but still seems interesting that these PC funds are finding ways to enhance IRR or hedge against a potentially bad loan. There is a strong chance I am thinking about this the wrong way so anyone else want to chime in and give their thoughts? Or perhaps a better explanation of what's happening?
Aut tempore fugit cupiditate officiis enim dignissimos. Aut quia iusto non inventore vero earum. Nemo laborum dicta ipsum occaecati et dicta.
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