Core Insights - The private credit market, valued at $1.7 trillion, is shifting towards more frequent portfolio valuations to attract individual investors, marking a significant change from its traditionally opaque practices [2][5]. Group 1: Market Trends - Many fund managers are now offering vehicles that allow retail investors to invest on a monthly or daily basis, necessitating more frequent updates of net asset values (NAV) [3][5]. - Interval funds have raised nearly $123 billion as of Q3, reflecting a 9.4% increase from the previous period, with a significant portion allocated to debt and fixed income [6]. Group 2: Valuation Practices - The frequency of valuations has increased, with about 20% of direct lending clients now requiring monthly valuations, a notable rise from five years ago when such practices were rare [5]. - Fidelity Investments reports that 100% of its portfolio is marked by a third party every month, ensuring timely updates based on borrower performance [7]. Group 3: Challenges and Limitations - Despite more frequent NAV calculations, many firms still do not provide monthly updates on the value of individual loans, leading to potential confusion for investors [8]. - The valuation of private credit loans remains a contentious issue, especially when loans underperform, as there is no standard trading mechanism to assess their value over time [9]. - Investors are cautioned that more frequent marks do not equate to the ability to trade these products easily, as the process of buying in and withdrawing funds can be complex [10].