easy · Private Credit & Debt fund-structures-returns-economics
A private credit fund manager is evaluated on their 'Loss Ratio'.
What does this metric specifically measure?
- The amount of management fee income lost due to fund-level expenses.
- The decrease in valuation of public equities held in the fund's liquidity reserve.
- The percentage of deal opportunities that the manager rejects during the screening phase.
- The percentage of invested capital that was lost due to borrower defaults and restructurings.
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