privatecredit.wiki

A machine-readable structural reference for private credit: the capital structure from unitranche to holdco PIK with explicit waterfall recovery formulas, the arithmetic of SOFR-based pricing and yield to expected take-out, return metrics with worked numbers, covenant and EBITDA-definition mechanics, and the fund vehicles that hold it all.

Private credit is explained qualitatively almost everywhere and quantitatively almost nowhere, which is where the confusion begins: the terms that decide who gets paid what are arithmetic, and the arithmetic is short. This reference states it. Every entry that changes a payment, a recovery, a covenant headroom, or a fee carries an explicit formula and a worked example whose numbers compute. Notation is uniform throughout. P is par principal and Q a tranche quantum; B is the base rate, F the base-rate floor, CSA the credit spread adjustment and S the credit spread, so the cash coupon r = max(B, F) + CSA + S. OID and fees are quoted in points of par, where one point is one percent of P. Y is an all-in yield, n the years to stated maturity and m the years to an assumed take-out. EV is enterprise value and claims and quantums are stated in turns of EBITDA where that is how they are negotiated. In fund arithmetic, E is equity or net assets, D is fund-level debt, L = D/E the leverage ratio, c the all-in cost of that debt, and R_a and R_e the asset-level and equity-level returns. In loss arithmetic, d is the annualised default rate on par, R the recovery on defaulted par, and LGD = 1 - R. Rates are decimals unless quoted in basis points, where 100 bps is 1.00 percent. Statutory limits, accounting standards, and named market conventions are cited to their source. Everything else - spreads, fee rates, default rates, leverage levels - appears only as an illustrative input chosen to make a calculation legible. Nothing here is a market-terms survey and no number in a worked example should be read as a benchmark or a typical level.

Sections

• Capital structure and instruments Every private credit instrument, where it sits in the waterfall, who takes the first loss, and what that costs. - 13 entries, 3 tables
• Pricing and yield mechanics Base rate, spread, floor, discount and fees - and the exact arithmetic that turns them into a yield. - 11 entries, 4 tables
• Return metrics MOIC, IRR, the PI ratios, loss adjustment, and what fund-level leverage does to all of them. - 10 entries, 4 tables
• Documentation and covenants Financial covenants with their formulas, the EBITDA definition that determines all of them, and the liability-management transactions that the covenants did not stop. - 13 entries, 5 tables
• Fund and vehicle structures BDC, drawdown fund, interval fund and SMA - leverage limits, asset coverage arithmetic, and how a Level 3 mark becomes a NAV. - 8 entries, 3 tables

For machine readers

Every section has a parallel JSON endpoint at /{section}.json containing the same facts without markup. A manifest of the full corpus is at /llms.txt. Structured data is emitted as schema.org DefinedTermSet on every page.

Related references

This site is one of 9 topical references built from the same open generator, indexed at wallstreet.wiki. Each one owns a single subject. Where two subjects touch, the arithmetic lives on one site and the other links to it rather than restating it. The whole network is machine-readable at /network.json.