Kroll and StepStone Group Introduce New Private Credit Benchmarks
A new industry standard for faster, more precise and confident decision-making in private capital markets
In an exciting development for the private capital market, Kroll, a renowned financial and risk advisory solutions provider, has teamed up with StepStone Group, an expert in private markets solutions, to unveil the Kroll StepStone Private Credit Benchmarks. This innovative product aims to reshape industry practices by offering a robust and precise valuation tool that provides unparalleled insights into private credit investments.
Establishing a New Standard in Private Credit
The combination of Kroll's extensive expertise in financial solutions and StepStone Group's deep understanding of private market dynamics is reflected in these benchmarks. Unlike traditional methods that rely on fund-level data or estimates, the Benchmarks are built on detailed loan-level data gathered from over 15,000 transactions. This approach enhances the reliability and accuracy of the information provided to investors, facilitating sound decision-making.
Insights Driven by Data
These private credit Benchmarks deliver timely and actionable insights based on anonymized data, crucial for navigating the growing private investment landscape. Weekly updates ensure that industry players have access to the latest primary market information, empowering them to make informed decisions regarding capital allocation, loan terms, and pricing.
Responding to Market Demand
Jacob Silverman, CEO of Kroll, expressed enthusiasm for this collaboration: "Investor interest and confidence in private markets is surging, driven largely by the increasing accessibility of private capital to retail investors. Our new benchmarks are designed to meet this demand by providing a rigorous solution that enables near real-time monitoring of market conditions and investment performance."
The Benchmarks provide comprehensive insights across various dimensions such as region, sector, asset size, and loan security, making them a vital tool for portfolio managers and institutional investors alike. This extensive coverage, particularly in both U.S. and European markets, facilitates more strategic decision-making for capital allocation.
Building an Intelligence Toolkit
Marcel Schindler, Partner and CEO of StepStone Private Debt, remarked on the growing need for transparent and well-defined benchmarks as private credit demand increases globally: "By uniting Kroll's rich dataset in private credit with our SPI by StepStone platform, we are crafting an exceptional intelligence toolkit that empowers investors to enhance their decision-making capabilities within the private credit ecosystem."
The Future of Private Markets
With retail investors increasingly shifting their focus from public to private market investments, Kroll is keenly aware of the unique opportunities this presents. Michael H. Dolan, President of Financial Advisory at Kroll, highlighted the potential for further growth: "Although retail investors currently hold over 50% of global wealth, their presence in private markets is limited to around 20%. The industry is poised for transformation, and we are dedicated to facilitating this transition to benefit all stakeholders involved."
Tyler Johnson, Chief Technology Officer of StepStone Group, reiterated the importance of effective benchmarking in private markets, noting that this ongoing collaboration will continue to support the evolution of more comprehensive data analytics tools: "Together, we will elevate the standard of intelligence available to private credit participants, enhancing transparency and strategic planning across the board."
Access and Additional Resources
The Kroll StepStone Private Credit Benchmarks are integrated into Kroll's Private Capital Markets Platform, a resource crafted to assist users in identifying and analyzing critical valuation drivers for illiquid investments. This technology reinforces Kroll’s commitment to providing insightful solutions that meet complex market needs.
To discover more about these innovative Benchmarks, visit Kroll's official website. Kroll and StepStone will also host an interactive webinar to showcase the Benchmarks and their application for market players.
Frequently Asked Questions
What are the Kroll StepStone Private Credit Benchmarks?
The Kroll StepStone Private Credit Benchmarks are new tools designed to provide rigorous valuation and actionable insights based on extensive loan-level data from thousands of deals.
How will these Benchmarks benefit investors?
They enhance decision-making by providing timely, reliable information that can improve capital allocation and monitoring of private credit portfolios.
Who developed these Benchmarks?
These benchmarks were developed through a collaboration between Kroll and StepStone Group, combining their financial expertise and market insights.
How often are the Benchmarks updated?
The Benchmarks are updated weekly to incorporate the latest primary market data for accurate and timely assessments.
Where can I learn more about the Benchmarks?
More information can be found on Kroll's official website, which provides details on the Benchmarks and their application in the market.
