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How to value a credit when the portfolio is illiquid is a question that plagues private credit — and the result has been valuations that differ as much as 50% within different vehicles of the same asset manager, as reported by 9fin. 

In the hours since the FT reported that the UK Financial Conduct Authority (FCA) will launch a review of private market valuations, private market intelligence companies have received a “flood” of inquiries from concerned investors, according to two data providers.

“In terms of private credit, we’ve had more inquiries in the last day than we’d had in total up to that moment,” the first of the providers said, “the dam has finally broken; it’s unleashed the floodgates.”