Hedge fund Rubric Capital has said that some private credit managers are using accounting techniques to make balance sheets appear less leveraged, according to a report by Reuters citing a letter from the firm.
It said certain business development companies (BDCs) are temporarily shifting borrowings off their balance sheets around quarter-end, with the debt reappearing shortly afterwards.
In the February letter, Rubric said the practice is aimed at preserving investor confidence and maintaining...
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