Funds: Investment Fund Debt Global Rating Methodology

This proposed update to the Investment Fund Debt Global Rating Methodology will be available for comment on KBRA’s website through February 27, 2026. After the public comment period, the proposal, if adopted, will supersede the version of this document that was published on March 12, 2020. The update includes a proposed change to the quantitative determinant weightings typically used when rating notes issued by feeder funds into direct lending funds and the addition of two appendices to enhance transparency regarding application of the methodology. Appendix A explains how KBRA uses guideline quantitative determinants weightings to facilitate ratings consistency across similar fund debt transactions. Appendix B illustrates how KBRA applies its rating methodology to a hypothetical feeder fund that issues debt and equity to invest in a master fund. While the illustrative example is based on a direct lending strategy, the analytical framework described is applicable across a range of…