MFA white paper documents the myriad of existing private lending datasets
Washington, D.C. – A new white paper highlights the myriad of private credit direct lending data that are readily available to federal and state regulators. Published today by MFA, the white paper, “Private credit data: Readily available and fit for purpose,” catalogues the specific types of private lending data that are accessible through public filings, regulatory filings, and commercial datasets. The extensive sources of data are a result of private credit’s regulatory framework which is fit for purpose for the diverse industry it is designed to monitor.
“Private credit direct lending enhances financial stability and is essential for U.S. economic growth. The industry provides nearly $2 trillion in capital to businesses of all sizes to help them grow, innovate, and create jobs,” said Bryan Corbett, MFA President and CEO. “There is a wealth of data on private lending that are available to regulators as they look to monitor this important and growing asset class.”
MFA’s paper notes that documenting what data is available can help regulators coordinate to better utilize existing data sets to fill any perceived information gaps. This will allow oversight of the industry without disrupting American businesses’ access to capital, U.S. economic growth, and the returns funds generate for their beneficiaries, including pensions, foundations, and endowments.
The white paper emphasizes that private lending data are made available to regulators through required public information filings, private submissions to regulators, and commercial datasets.
Examples of public information filings include:
- BDC reports: Filed with the U.S. Securities and Exchange Commission (SEC) and include detailed information on individual portfolio holdings
- Uniform Commercial Code (UCC) filings: Filed with state officials and notify all creditors of lenders’ security interest in the underlying collateral
- State insurance filings: Filed with insurance regulators, enabling them to monitor compliance with liquidity and investment quality requirements
Examples of data submissions for regulators include:
- Bank call reports: Filed with banking regulatory agencies to monitor bank lending
- Form PF: Filed with the SEC and enables regulatory bodies to oversee private fund activities and potential financial stability risks
- State lending licensing and reporting requirements: Allow state regulatory authorities to ensure compliance with consumer protection requirements and lending laws
Read the full research paper here.
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About the global alternative asset management industry
The global alternative asset management industry, including hedge funds, credit funds, and crossover funds, has assets under management of $5.5 trillion (Q3 2023). The industry serves thousands of public and private pension funds, charitable endowments, foundations, sovereign governments, and other global institutional investors by providing portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets.
About MFA
Managed Funds Association (MFA), based in Washington, DC, New York, Brussels, and London, represents the global alternative asset management industry. MFA’s mission is to advance the ability of alternative asset managers to raise capital, invest, and generate returns for their beneficiaries. MFA advocates on behalf of its membership and convenes stakeholders to address global regulatory, operational, and business issues. MFA has more than 180 member fund managers, including traditional hedge funds, credit funds, and crossover funds, that collectively manage over $3.2 trillion across a diverse group of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors to diversify their investments, manage risk, and generate attractive returns over time.
