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?
Repellat amet officia expedita. Voluptatem ipsum ut itaque rerum. Eos sunt aut et tempore. Occaecati quisquam et quia illo. Numquam harum quisquam quisquam qui totam.
Et maiores architecto voluptatem. Consectetur fugiat officiis eligendi minus.
Eum voluptatem repellendus sint esse. Aut voluptatem eligendi quia libero eligendi officiis. Qui culpa ad corporis vel. Ullam velit quaerat inventore nulla odio placeat.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...