Executives from a New York pension fund and a Dallas‑based multifamily office shared their views during a PEI Group webinar on private debt investment. While private debt secondaries can be useful for price discovery, investors raised doubts about their valuations and returns, saying the class still lacks transparent benchmarks.

Capital has poured into private credit secondaries in recent months. According to PEI Group data, the asset class accounted for a quarter of the $52.5 billion raised by secondaries managers in the first half of the year. This surge also signals a shift toward more diversified portfolio strategies, and it underscores the need for clearer reporting standards.

Panelists noted that secondaries offer liquidity and diversification, yet the lack of a robust pricing framework can lead to over‑ or under‑valuation. The lack of a unified pricing mechanism means investors must scrutinize each deal closely. They urged market participants to develop more rigorous due‑diligence metrics and rely on a mix of pre‑deal and post‑deal data.

The webinar underscored that while private debt secondaries remain attractive, investors must carefully assess valuation assumptions before committing capital and to ensure alignment with risk tolerance.