Sorkin: Private equity and credit both delay markdowns to preserve valuations
Andrew Ross Sorkin · Are We Screwed If AI Works? — With Andrew Ross Sorkin · Mar 18, 2026 · at 32:55
Andrew Ross Sorkin explains the incentive structures that delay valuation markdowns in private credit and private equity on Big Technology Podcast.
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“There is a whole sort of universe that I'd put in the category of mark to make believe. And the incentive system is such that you want that mark to make believe to go on as long as possible, because if you are The equity owner, you don't want to mark your market down because by the way, then you can't raise new money. By the way, if you're the private credit firm, you actually also don't want them to mark it down because it's going to therefore impact your own value.”
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