Krishna Skandakumar, Private Investment Fund and Secondaries partner, cautions: “Unlike private equity secondaries, private credit GP-led transactions are often executed without brokers or intermediaries, so the rest of the world doesn’t necessarily know what deal particular parties have struck with one another “This means we don’t necessarily have a good handle on the scale of transactions.” On the other side, there are three factors involved in driving firms to the secondaries market: liquidity, valuation and sophistication. In recent years, assets under management for private credit funds have reached at least $1.5 trillion. This has left plenty of investors looking for distributions and, worried about the denominator effect, seeking liquidity across their portfolios . Skandakumar agrees. He says: “In private credit secondaries, you’re only looking at a very small discount against the underlying portfolio compared to what you’d see in a private equity analogue.” More in Private Debt Investor.