Houlihan Lokey Launches the Private Performing Credit Index, the First Index to Track Performing Private Credit Loans

November 03, 2021 at 11:11 AM EDT

Houlihan Lokey (NYSE: HLI), the global investment bank, announced today the launch of the Private Performing Credit Index (PPCI), a new quarterly index that offers visibility to the universe of performing private credit loans.

“We are excited to launch the first index of its kind to bring transparency to the typically opaque private credit markets,” said David Wagner, Senior Advisor in Houlihan Lokey’s Portfolio Valuation and Fund Advisory Services practice. “As these markets continue to grow in size and significance, transparency is more important than ever, and the PPCI will provide a valuable reference set of quarterly yields that are drawn from our unique view of private credit,” he added.

The Index comprises an aggregate view drawn from Houlihan Lokey’s extensive dataset of private credit loan valuations. The initial representation of this dataset is an observation of all-in yield of approximately 7,000 qualifying quarterly asset valuations performed since September 30, 2017. The firm’s automated private credit valuation tool applies certain exclusion and limit rules after which the Index is computed as a weighted average yield of all qualifying private credit loans valued in a quarter. Future representations of this dataset may visualize other computations such as total return or spread. The complete methodology and Index description can be found here.

“As a leading advisor to many of the world’s largest asset managers who rely on our reputation, experience, and independent advice, we are frequently called upon to provide valuations of instruments in many of the least visible asset classes, particularly private credit. This unique position provides us with an opportunity to provide transparency and, more importantly, a basis for comparison to specific assets or other indices,” said Dr. Cindy Ma, Global Head of Houlihan Lokey’s Portfolio Valuation and Fund Advisory Services practice. “We believe the PPCI will become an essential tool to help inform investors’ views of market dynamics and help them make more transparent, informed decisions regarding their investment theses.”

For more information on the PPCI, please visit the Insights page of HL.com.

About Houlihan Lokey

Houlihan Lokey (NYSE: HLI) is a global investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, and valuation. The firm serves corporations, institutions, and governments worldwide with offices in the United States, Europe, the Middle East, and the Asia-Pacific region. Independent advice and intellectual rigor are hallmarks of the firm’s commitment to client success across its advisory services. Houlihan Lokey is the No. 1 M&A advisor for the past six consecutive years in the U.S., the No. 1 global restructuring advisor for the past seven consecutive years, and the No. 1 global M&A fairness opinion advisor over the past 20 years, all based on number of transactions and according to data provided by Refinitiv.