Base case
Operating thesis holds
- EBITDA
- £25m
- Enterprise value
- £250m
- LTV
- 60%
Valuation
~98% of par
Coverage and cushion as underwritten; price is driven entirely by spread mismatch versus the market.
A worked example of how Markst values a performing private-credit investment — from coverage test and methodology selection through market-based discounting, base-case pricing, and scenario testing.
The deal facts below are the inputs the valuation engine consumes. Every field is recorded on the deal version and carried into the run trace — nothing here is derived silently.
The coverage test determines whether the facility is a performing credit or a distressed situation — and therefore which valuation methodology applies.
The loan is covered by meaningful enterprise value, with a substantial equity cushion beneath it. On that basis it is treated as a performing credit rather than a distressed situation.
Coverage ≥ 1.0 and equity cushion intact — priced on a yield-based DCF rather than recovery.
The required yield is derived from observable markets and adjusted for the characteristics of private credit — illiquidity and facility-specific credit risk.
The loan pays slightly less than the return currently required by the market for similar risk. It should therefore be valued modestly below par.
The present value is the sum of expected cash flows discounted at the market-required return. No learned weights, no stochastic drift — the same inputs under the same engine version produce the same output on re-run.
Because the required yield (≈700 bps) is slightly above the contractual coupon (650 bps), the present value of the facility falls below par.
The base-case run produces a single price, a confidence range, and a short narrative identifying the primary driver — the same surface the production platform emits on every mark.
Bumping the operating thesis perturbs enterprise value, then the engine reprices with the same deterministic pipeline. The three scenarios below are weighted according to the published methodology and blended into the final mark.
Coverage and cushion as underwritten; price is driven entirely by spread mismatch versus the market.
Reduced enterprise value weakens coverage and pushes the loan closer to stress territory.
Improved operating performance and stronger coverage support value at or slightly above par.
The example above shows how Markst values a private credit position using a structured institutional process — methodical, auditable, and grounded in market logic.
A short data-room trial produces the same views on your portfolio, against a reference date you choose.