{"id":5179,"date":"2026-11-10T03:55:21","date_gmt":"2026-11-10T02:55:21","guid":{"rendered":"https:\/\/www.ondara.group\/private-debt-valuation-investor-questions\/"},"modified":"2026-11-10T03:55:21","modified_gmt":"2026-11-10T02:55:21","slug":"private-debt-valuation-investor-questions","status":"publish","type":"post","link":"https:\/\/www.ondara.group\/en\/private-debt-valuation-investor-questions\/","title":{"rendered":"Private Debt Valuation: What to Ask Your Manager"},"content":{"rendered":"<p><strong>Private debt valuation is the price at which a manager records a loan and its collateral at any given time, and investors should be able to understand how it is calculated, who reviews it and how often.<\/strong> On 10 November 2026, Australia&#8217;s regulator ASIC again pointed to opacity in the sector, a useful warning for any investor in Spain.<\/p>\n<h2>Private debt valuation: why it matters to investors<\/h2>\n<p>Private debt is not listed. There is no daily screen price, so the value of a loan rests on estimates: the appraisal of the collateral, the behaviour of the borrower and the manager&#8217;s assumptions. If those estimates are optimistic, an investor may enter or exit at a price that does not reflect reality.<\/p>\n<p>It helps to separate two questions. First: what is the collateral worth? Second: what is the loan worth if the borrower runs into trouble? A serious manager answers both with a method and with documents, not with general statements.<\/p>\n<h2>Trends: what is happening worldwide and in Spain<\/h2>\n<ul>\n<li><strong>Australia, 10 November 2026.<\/strong> According to <a href=\"https:\/\/www.abc.net.au\/news\/2026-11-10\/asic-slam-250-billion-dollar-private-credit-sector\/107365226\" target=\"_blank\" rel=\"noopener\">ABC News<\/a>, ASIC published its second surveillance report on private credit, covering 24 funds with about A$18 billion under management. The regulator says &#8220;complex structures, opacity and deficient disclosure practices persist&#8221;. It has issued six interim stop orders and referred several cases for investigation. This is another country, but it describes risks found in any unlisted debt market.<\/li>\n<li><strong>Worldwide, November 2025.<\/strong> In its previous report, ASIC had already identified valuation problems, conflicts of interest and fee transparency issues in some of the funds reviewed. The lesson is that valuation and conflicts of interest go hand in hand.<\/li>\n<li><strong>Spain, spring 2026.<\/strong> The <a href=\"https:\/\/www.bde.es\/wbe\/en\/publicaciones\/estabilidad-financiera-politica-macroprudencial\/informe-estabilidad-financiera\/informe-de-estabilidad-financiera-primavera-2026.html\" target=\"_blank\" rel=\"noopener\">Banco de Espa\u00f1a Financial Stability Report (spring 2026)<\/a> includes a box analysing the private credit market in Spain, a sign that Spain&#8217;s central bank is watching this segment closely.<\/li>\n<li><strong>Spain, October 2026.<\/strong> The <em>Observatory of Alternative Financing Secured by Real Estate Collateral in Spain<\/em>, with market analysis by PwC and legal framework by Cuatrecasas, forecasts EUR 3,891 million of volume in 2026 (+51% on 2025), according to <a href=\"https:\/\/www.pwc.es\/es\/real-estate\/observatorio-financiacion-alternativa-colateral-hipotecario-espana.html\" target=\"_blank\" rel=\"noopener\">PwC<\/a>. The more the market grows, the more it matters that valuations are comparable and verifiable. This is a forecast, not a final figure.<\/li>\n<\/ul>\n<p>For a private investor in Spain, the practical conclusion is simple: the faster an unlisted market grows, the more useful it is to ask how each transaction is valued before comparing returns.<\/p>\n<p><img data-dominant-color=\"b1aaa8\" data-has-transparency=\"false\" style=\"--dominant-color: #b1aaa8;\" decoding=\"async\" src=\"https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/11\/escritorio-calculadora-informes-valoracion-inversion.webp\" alt=\"Desk with calculator, charts and reports for reviewing the valuation of private debt\" width=\"1680\" height=\"1120\" class=\"aligncenter size-full wp-image-5175 not-transparent\" loading=\"lazy\" srcset=\"https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/11\/escritorio-calculadora-informes-valoracion-inversion-200x133.webp 200w, https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/11\/escritorio-calculadora-informes-valoracion-inversion-300x200.webp 300w, https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/11\/escritorio-calculadora-informes-valoracion-inversion-400x267.webp 400w, https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/11\/escritorio-calculadora-informes-valoracion-inversion-600x400.webp 600w, https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/11\/escritorio-calculadora-informes-valoracion-inversion-768x512.webp 768w, https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/11\/escritorio-calculadora-informes-valoracion-inversion-800x533.webp 800w, https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/11\/escritorio-calculadora-informes-valoracion-inversion-1024x683.webp 1024w, https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/11\/escritorio-calculadora-informes-valoracion-inversion-1200x800.webp 1200w, https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/11\/escritorio-calculadora-informes-valoracion-inversion-1536x1024.webp 1536w, https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/11\/escritorio-calculadora-informes-valoracion-inversion.webp 1680w\" sizes=\"auto, (max-width: 1680px) 100vw, 1680px\" \/><\/p>\n<h2>How a loan secured on real estate is valued<\/h2>\n<p>Several different values are involved in a mortgage-backed loan. It pays not to mix them up:<\/p>\n<ul>\n<li><strong>Appraisal value:<\/strong> set by an independent valuation firm. Check who commissions it, when it was done and on what assumptions (current value, value after works, quick-sale value).<\/li>\n<li><strong>LTV (loan to value):<\/strong> the ratio of the loan to the value of the collateral. If the appraisal changes, the LTV changes even though the loan stays the same.<\/li>\n<li><strong>Value of the loan in the portfolio:<\/strong> the manager&#8217;s estimate of what is recoverable, based on borrower behaviour and the exit plan.<\/li>\n<\/ul>\n<p>You can read more on how collateral works in our guide to <a href=\"https:\/\/www.ondara.group\/en\/collateral-private-real-estate-debt\/\">collateral in private real estate debt<\/a>.<\/p>\n<h3>Illustrative and hypothetical example: LTV when the appraisal falls<\/h3>\n<p>Suppose a loan of EUR 1,100,000 secured on a property appraised at EUR 2,000,000 (initial LTV of 55%). The table shows how the LTV rises if the value of the collateral falls. It is not a real transaction or a market forecast.<\/p>\n<div class=\"tabla-seo\">\n<table>\n<caption>Illustrative example prepared by Ondara Group, November 2026<\/caption>\n<thead>\n<tr>\n<th>Fall in property value<\/th>\n<th>Collateral value<\/th>\n<th>Resulting LTV<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>0%<\/td>\n<td>EUR 2,000,000<\/td>\n<td>55.0%<\/td>\n<\/tr>\n<tr>\n<td>10%<\/td>\n<td>EUR 1,800,000<\/td>\n<td>61.1%<\/td>\n<\/tr>\n<tr>\n<td>20%<\/td>\n<td>EUR 1,600,000<\/td>\n<td>68.8%<\/td>\n<\/tr>\n<tr>\n<td>30%<\/td>\n<td>EUR 1,400,000<\/td>\n<td>78.6%<\/td>\n<\/tr>\n<tr>\n<td>40%<\/td>\n<td>EUR 1,200,000<\/td>\n<td>91.7%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>With a 40% fall, the collateral barely covers the loan and nothing is left for enforcement and sale costs. That is why a prudent initial LTV is a cushion, not a guarantee of repayment.<\/p>\n<h2>What to ask the manager before investing<\/h2>\n<div class=\"tabla-seo\">\n<table>\n<caption>Source: own work based on ASIC findings (November 2025 and 2026), November 2026<\/caption>\n<thead>\n<tr>\n<th>Topic<\/th>\n<th>Key question<\/th>\n<th>Warning sign<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Appraisal<\/td>\n<td>Who commissions it and how often is it updated?<\/td>\n<td>The borrower commissions it or it is never updated<\/td>\n<\/tr>\n<tr>\n<td>Valuation policy<\/td>\n<td>Is it in writing and reviewed by a third party?<\/td>\n<td>Only undocumented internal criteria<\/td>\n<\/tr>\n<tr>\n<td>Conflicts of interest<\/td>\n<td>Are there related-party transactions?<\/td>\n<td>The manager lends to companies in its circle without explaining it<\/td>\n<\/tr>\n<tr>\n<td>Fees<\/td>\n<td>What is charged and on what basis?<\/td>\n<td>Fees tied to a value the manager itself sets<\/td>\n<\/tr>\n<tr>\n<td>Periodic reporting<\/td>\n<td>What data do you receive and how often?<\/td>\n<td>Generic reports with no data per transaction<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>For a fuller list, see our <a href=\"https:\/\/www.ondara.group\/en\/private-real-estate-debt-due-diligence\/\">real estate debt due diligence checklist<\/a> and the guide to <a href=\"https:\/\/www.ondara.group\/en\/real-estate-private-debt-term-sheet\/\">what to check in a term sheet<\/a>. On valuations that do not reflect real stress, also read <a href=\"https:\/\/www.ondara.group\/en\/hidden-defaults-private-credit-moodys\/\">hidden defaults in private credit<\/a>.<\/p>\n<h2>How we work at Ondara Group<\/h2>\n<p>Ondara Group is an alternative investment manager based in Barcelona, active since 2018. We structure private debt transactions secured on real estate: we analyse each transaction individually, look for real assets as collateral and keep direct contact with the management team. The minimum investment is EUR 25,000. Ondara aims for target double-digit returns, which are never guaranteed. You can meet the team on <a href=\"https:\/\/www.ondara.group\/en\/who-we-are\/\">who we are<\/a> and see the group&#8217;s businesses on <a href=\"https:\/\/www.ondara.group\/en\/brands\/\">brands<\/a>.<\/p>\n<h2>Risks to consider<\/h2>\n<ul>\n<li><strong>Loss of capital.<\/strong> All investment carries risk, including partial or total loss of the capital invested.<\/li>\n<li><strong>Subjective valuation.<\/strong> With no market price, two managers can value the same loan differently.<\/li>\n<li><strong>Illiquidity and term.<\/strong> Exiting before maturity can be difficult or costly; see the <a href=\"https:\/\/www.ondara.group\/en\/private-credit-redemptions-liquidity\/\">redemption limits in private credit<\/a>.<\/li>\n<li><strong>Real estate collateral.<\/strong> It mitigates risk but does not remove it: value can fall and enforcement takes time and money.<\/li>\n<li><strong>Data from other countries.<\/strong> ASIC&#8217;s findings refer to Australia and cannot be transferred to Spain as they stand.<\/li>\n<\/ul>\n<h2>Frequently asked questions<\/h2>\n<h3>What does valuing a private loan mean?<\/h3>\n<p>Estimating how much is expected to be recovered, taking into account the collateral, the borrower and the exit plan.<\/p>\n<h3>Who should appraise the collateral?<\/h3>\n<p>An independent valuation firm, ideally chosen by the lender rather than the borrower.<\/p>\n<h3>Does a low LTV remove the risk?<\/h3>\n<p>No. It reduces the probability of loss, but a sharp fall in value or slow enforcement can erode the cushion.<\/p>\n<h3>What did ASIC do on 10 November 2026?<\/h3>\n<p>It published its second report on private credit, reviewing 24 funds, and warned that opacity and disclosure shortcomings persist, according to ABC News.<\/p>\n<h3>Can I ask for periodic reports?<\/h3>\n<p>Yes. It is reasonable to ask, before investing, what information you will receive, how often and in what detail per transaction.<\/p>\n<h2>In summary<\/h2>\n<ul>\n<li>Without a market price, valuation is an estimate: ask how it is calculated.<\/li>\n<li>ASIC again warned on 10 November 2026 about opacity and conflicts in private credit.<\/li>\n<li>The LTV changes when the appraisal falls: an illustrative example from 55% to 91.7%.<\/li>\n<li>Ask for an independent appraisal, a written valuation policy and periodic reporting.<\/li>\n<li>All investment carries risk, including loss of capital.<\/li>\n<\/ul>\n<p>If you would like to know how we invest, <strong><a href=\"https:\/\/www.ondara.group\/en\/investors\/\">register as an investor<\/a><\/strong> and we will explain how it works. The minimum investment is EUR 25,000.<\/p>\n<p><em>This article is for information purposes only and does not constitute an investment recommendation or financial advice. All investments carry risks, including the possible loss of the capital invested, and past or target returns do not guarantee future returns. Analyse each opportunity with a professional before investing.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Private debt valuation explained: how it is calculated, what to ask the manager and what ASIC flagged on 10 Nov 2026. With an illustrative LTV example.<\/p>\n","protected":false},"author":1,"featured_media":5172,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20,22],"tags":[],"class_list":["post-5179","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-inversiones-alterativas","category-private-credit"],"_links":{"self":[{"href":"https:\/\/www.ondara.group\/en\/wp-json\/wp\/v2\/posts\/5179","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ondara.group\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ondara.group\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ondara.group\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ondara.group\/en\/wp-json\/wp\/v2\/comments?post=5179"}],"version-history":[{"count":0,"href":"https:\/\/www.ondara.group\/en\/wp-json\/wp\/v2\/posts\/5179\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ondara.group\/en\/wp-json\/wp\/v2\/media\/5172"}],"wp:attachment":[{"href":"https:\/\/www.ondara.group\/en\/wp-json\/wp\/v2\/media?parent=5179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ondara.group\/en\/wp-json\/wp\/v2\/categories?post=5179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ondara.group\/en\/wp-json\/wp\/v2\/tags?post=5179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}