Atlas Grove Credit

What the token is

AGC is a limited partnership interest, wrapped. The partnership makes senior secured loans to US mid-market companies, currently 23 borrowers, weighted average coupon 11.4%, weighted average remaining term 2.7 years.

Private credit is the asset class where the token is furthest from the asset. There is no daily market here. The NAV you see on-chain is somebody’s model, refreshed monthly, and the whole question is whose model and on what inputs.

What the issuer answered

More than we expected. We have the loan tape at borrower level with industry, coupon, seniority, covenant package and payment status, which is the document that lets you form your own view instead of accepting theirs. Two loans are on non-accrual. Both are disclosed on the tape and neither appears on the marketing page.

The FY2025 audit is unqualified and covers the partnership.

What is still open

The valuation policy. We asked for the written methodology and the identity of the independent valuation agent, and the answer was that the manager marks the book and the auditor reviews it annually. There may be a written policy. We have not seen it, so we are not going to describe one.

Also open is the fee treatment on non-accrual loans. Management fees are charged on invested capital rather than on NAV, which means a loan that stops paying keeps paying the manager. That is in the memorandum and it is legitimate. It is also the sort of clause a reader should meet before they invest rather than after.