#USA #New York #Kroll #private credit #StepStone Group

Kroll and StepStone Group Launch Private Credit Benchmarks

In a significant advancement for the private capital markets, Kroll and StepStone Group have announced the launch of the Kroll StepStone Private Credit Benchmarks. This innovative industry standard aims to enhance the precision and reliability of investment decisions in private credit, a rapidly expanding asset class.

About the New Benchmarks

The private credit Benchmarks are the result of a pioneering collaboration between Kroll, a global leader in financial and risk advisory solutions, and StepStone Group, a prominent player in private markets. These benchmarks are uniquely constructed using comprehensive loan-level data drawn from over 15,000 deals, rather than relying on aggregated fund-level data or estimated models. This paradigm shift allows for more rigorous evaluations and deeper insights into the investment characteristics of the asset class.

The Role of Data in Decision-Making

Jacob Silverman, CEO of Kroll, highlighted the increasing interest in private markets, noting that the democratization of private capital, termed 'retailification,' is contributing to greater investor engagement. He expressed optimism about future trends, anticipating a substantial uptick in allocations to private markets. The data-rich Benchmarks will provide essential insights, enabling swift and informed decision-making for investors navigating these complex markets.

With updates occurring weekly, the Benchmarks offer anonymized, filterable insights that span various dimensions, including geographic regions, sectors, sizes, and types of loan security. This comprehensive coverage across both U.S. and European markets enhances capital allocation strategies, empowers portfolio monitoring, and informs loan pricing and terms.

Insights From Industry Leaders

Marcel Schindler, StepStone's Partner and CEO of Private Debt, underscored the growing demand for clarity and precision within private credit solutions. He emphasized that as the market evolves, the need for granular benchmarks becomes increasingly critical. By leveraging Kroll's extensive datasets in private credit and integrating them with the complementary data from StepStone's SPI platform, a powerful intelligence toolkit is being developed to bolster decision-making across the entire private credit ecosystem.

Michael H. Dolan, President of Financial Advisory at Kroll, articulated the strategic advantage posed by private investment markets and the enduring growth opportunities they present, especially as more retail investors unlock access to this asset class. Notably, he pointed out that while retail investors hold over 50% of global wealth, their presence in private markets remains limited. The collaboration between Kroll and StepStone seeks to bridge this gap, assisting in the market transition.

Tyler Johnson, StepStone's Chief Technology Officer, emphasized that establishing robust benchmarks has long been a core challenge in private markets. He reassured that the partnership with Kroll aims to enhance the toolkit available to market participants, fostering greater transparency and granular understanding in private credit transactions.

Accessing the Benchmarks

The newly formed Benchmarks are now available through the Private Capital Markets Platform, part of Kroll’s Private Asset Valuation Solutions. This platform enables users to analyze, model, and understand the critical valuation drivers of illiquid investments effectively and on a large scale.

To further introduce and elaborate on the Private Credit Benchmarks, Kroll and StepStone will be hosting a joint webinar on September 16 at 1100 a.m. ET. Interested parties are encouraged to register and gain insights into these transformative benchmarks that will redefine private credit assessment.

For more information about the Kroll StepStone Private Credit Benchmarks, visit Kroll’s official website to explore the potentials these benchmarks unlock for investors.

In summary, as Kroll and StepStone set out to innovate within the realm of private credit, their collaboration signifies a critical turning point — one that aims to elevate investment strategies and facilitate informed decision-making in the world of private capital.