Expert Guidance in the Expanding Private Credit Market

Unlock Opportunity and Mitigate Risk in a Shifting Credit Landscape

Private credit’s remarkable growth and strong returns have established it as a key asset class. However, transparency regarding valuation and performance remains a concern. Independent validation can help bring greater clarity and confidence to investors. Fund managers who proactively adopt independent and regular verification of asset prices can enhance investor trust and foster sustainable growth in the private credit market.

Our Core Services Are:

Market-Based Valuation– accounting for unique or custom features, options, and covenants for credit assets including:

  • Direct lending and hybrid debt: senior secured, uni-tranche, mezzanine, PIK, and opportunistic loans
  • Structured & esoteric credit: CLO equity/mezzanine tranches, residual interests, specialty finance and ABS assets, embedded derivatives, and contingent liabilities

Risk & Performance Analytics – performing scenario based stress testing, public market equivalent analysis, risk adjusted return metrics, portfolio optimization diagnostics, and bespoke hedging design

Advisory & Legal Dispute Support – provide expert testimony and damages quantification for litigation, arbitration, and investigations

How FTI Consulting Can Help

We provide valuation and risk analytics that close transparency gaps in private credit. We enable private credit lenders, asset managers, and institutional investors to manage risk, seize opportunities, and maintain portfolio resilience. Our work products—with full documentation and reproducible results—can integrate directly into audit files, LP reports, investment committee packs, and regulatory / legal submissions.

Our Service Portfolio Includes:

  • Market-Based Valuation

    • Benchmarking pricing and risk metrics against similar instruments
    • Comparative valuation based on risk assessment, collateral analysis, and pricing of instruments with similar risk profiles

    Structured Credit and Exotic Asset Valuation

    • Value residuals and subordinated CLO tranches
    • Estimate expected losses for CLO tranches and capital requirements
    • Analyze contractual debt clauses and identify debt with similar features
    • Estimate contingent liabilities and embedded contractual optionality

    Performance Verification

    • Evaluate specific loan terms and conditions
    • Analyze the adequacy of collateral coverage over the loan amount
    • Assess active risk factors and headwinds
    • Compute public-market equivalent measures

    Portfolio Monitoring & Optimization

    • Custom stress testing, scenario analysis, risk assessment and mitigation
    • Construct risk metrics for monitoring and reporting
    • Model distance from optimal portfolios

    Hedging & Risk Management

    • Estimate expected losses and capital requirements
    • Propose hedging strategies against risks, including inflation and currency exchanges
    • Custom stress testing, scenario analysis, risk assessment and mitigation
    • Develop/enhance risk management framework

    Litigation Support

    • Advise in legal disputes
    • Provide expert testimony
    • Conduct damages and recovery analysis

Published

June 10, 2025

temp Key Contacts

Franck Risler, Ph.D.

Senior Managing Director, Leader of Securities, Commodities and Derivatives

Volkan Kubali, Ph.D

Managing Director

Ching Watson, Ph.D.

Managing Director

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