The more you know about this private-credit fund, the less you understand
The stock market has lots of questions about private-credit funds, namely how much they’re really worth. Investors are having a tough time figuring out answers. One reason: Even when investors know what’s in these funds, they quickly realize that they don’t know all that much. The result is that the funds often trade at discounts to their official net asset values. In that case, a dollar of assets ends up being worth less than a dollar. Blue Owl Capital Corp. is an example. The publicly traded private-credit fund trades for just 78% of its reported NAV. The fund, known as OBDC, cut…
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