Miami, Florida, Feb 9, 2026 – NYPPEX, a supplier of secondary market price data for private capital fund interests, noted greater variability in secondary pricing for private credit fund interests in the second half of 2025, a reflection of increased investor focus on the quality of underlying loans.

According to NYPPEX estimates, secondary bid prices for private credit fund interests in the latter half of 2025 ranged from about 82.50% to 98.75% of net asset value (NAV). This pricing variation occurred alongside heightened focus on borrower leverage, repayment structures, and credit performance within corporate loan portfolios.

“As private credit continues to develop, secondary market participants are placing more emphasis on loan-level fundamentals,” stated Gerry Rehman, a data analyst at NYPPEX. “Pricing discrepancies are becoming more closely linked to observable credit metrics, such as payment-in-kind usage and interest coverage ratios.”

Observed Market Developments

NYPPEX pinpointed several trends influencing secondary pricing activity during this period:

• Payment-in-Kind Usage: Across observed U.S. private credit funds, payment-in-kind (PIK) income averaged around 7.3%, with individual fund ratios ranging from 0% to 21%. In the fourth quarter of 2025, average PIK ratios rose by about 0.4% compared to the previous quarter. Higher PIK levels might signal cash flow challenges for borrowers.

• Corporate Credit Conditions: Publicly accessible data from credit rating agencies and financial institutions showed mixed loan performance. Default rates reached approximately 6% in certain stressed sectors, while senior direct lending portfolios generally stayed below 2%. Interest coverage ratios dropped to an estimated 1.5x in the second half of 2025, down from roughly 3.2x in 2021.

• Bankruptcy Filings: U.S. corporate bankruptcy filings in December 2025 were 7% higher than the prior year. Total filings for 2025 climbed to around 31,810, up from 30,201 in 2024. Elevated activity was seen among mid-sized corporate borrowers, though default rates eased by the third quarter of 2025.

• Net Asset Value Trends: In 2025, private credit fund NAVs increased by an average of 9.2% year-over-year, with individual fund performance ranging from 14% declines to 24% gains. First-lien loans made up approximately 83% of portfolio allocations on average, highlighting a continued focus on senior secured exposure.

Outlook

NYPPEX anticipates that secondary pricing for private credit fund interests will remain responsive to credit quality indicators in 2026. As economic conditions shift, market participants are expected to keep differentiating prices based on portfolio composition, borrower performance, and default risk.

The insights from NYPPEX stem from proprietary analysis and publicly available information, aiming to enhance market transparency regarding secondary pricing dynamics.

About NYPPEX

Established in 2004, NYPPEX offers secondary market price data for interests in private capital funds. Its subscription-based service provides quarterly secondary pricing estimates to aid in valuation, liquidity assessment, and transaction analysis. NYPPEX’s QMS has received recognition via an Internal Revenue Service private letter ruling, granting a safe-harbor exemption under U.S. Treasury Regulation §1.7704-1 for qualifying secondary transfers. NYPPEX is not a broker-dealer and does not solicit securities transactions.