Deal State
Definition
Deal state is the current lifecycle status assigned to a private credit offering or note. Common states include funding, allocating, outstanding, repaid, active workout, reperforming, and charged off.
Why it matters
Deal state is often more informative than marketing copy. A platform can truthfully report low realized charge-offs while also having a population of unresolved workouts. Investors comparing platforms should separate fully repaid deals, performing outstanding deals, unresolved distressed deals, reperforming credits, and realized losses.
Common misconceptions
- •Outstanding does not always mean current unless payment status is also clear.
- •Repaid and reperforming should not be blended without explanation.
- •Charge-off rate alone may miss active workout exposure.
Technical details
Useful status taxonomy
Funding or allocating: capital raise or allocation process is still open.
Outstanding: deal has funded and has not fully repaid.
Active workout: payment or covenant problems are being remediated.
Reperforming: previously distressed deal has resumed payments.
Charged off: some or all principal has been written off as uncollectible.