Based on the search results, there are no specific best practices or guidelines for private debt managers to follow when reporting on the illiquidity of their portfolios to investors. However, private debt managers can consider the following practices:
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Provide regular financial statements: Private debt managers should provide regular financial statements of the borrower issuing the private placement debt to investors 1 . These statements can help investors understand the performance of their investments and the liquidity of the underlying assets.
- Be transparent about liquidity risks: Private debt managers should be transparent about the liquidity risks associated with their investments and provide investors with information on how they manage these risks 2 .
- Use backward-looking analysis: Private debt managers can use backward-looking analysis to present performance and attribution reporting to investors 3 . This approach can help investors understand how their investments have performed in the past and can provide insight into the liquidity of the underlying assets.
- Provide information on market trends: Private debt managers can provide information on market trends, performance data, and regulatory developments in the private debt market to help investors evaluate the liquidity of their investments 4 .
In summary, private debt managers can address the challenge of illiquidity when reporting performance to investors by providing regular financial statements, being transparent about liquidity risks, using backward-looking analysis, and providing information on market trends. By addressing this challenge, private debt managers can help investors make informed investment decisions and protect themselves from the risks associated with private debt investments.