MCA portfolio typical bid levels reflect the prices buyers actually pay in secondary-market transactions in 2026, providing benchmarks for funders considering portfolio sales and LPs valuing existing positions.
2026 bid levels by portfolio composition.
| Portfolio type | Typical bid (% of NAV) | Notes |
|---|---|---|
| Performing A-paper pure | 92–98% | Institutional pricing tight |
| Performing B-paper pure | 85–92% | Moderate buyer competition |
| Performing C-paper pure | 70–82% | Specialized buyer demand |
| Mixed performing (A/B/C blend) | 80–90% | Most common transaction type |
| Stressed/delinquent mixed | 35–55% | Distressed buyer universe |
| Defaulted/charge-off | 8–25% | Collections-firm pricing |
| Litigation-ready bundle | 25–45% | Premium for documented COJ |
| LP fund interests | 75–95% | Vintage-dependent |
| Servicing rights only | 1–4% of NAV | Annual fee equivalent |
Bid premium/discount factors (% adjustments to base bid).
| Factor | Premium/discount |
|---|---|
| Strong loan-level data tape | +3–8% |
| Weak/incomplete documentation | −15–30% |
| National geographic diversification | +2–5% |
| Single-state concentration (NY/CA/IL) | +0–2% |
| Single-state concentration (rural/Southern) | −5–10% |
| Diversified industry mix | +2–5% |
| Trucking/restaurant concentration | −8–15% |
| Medical/professional services concentration | +3–8% |
| Recent vintage (2024–25) | +0–3% |
| Older vintage (2020–22) | −3–8% |
| Established servicer in place | +2–5% |
| Servicing transition required | −3–8% |
| Top-tier funder origination | +2–5% |
| Sub-tier funder origination | −5–10% |
Worked example — typical mixed-performing portfolio bid. - Base portfolio: $100M face, mixed A/B/C performing - Base bid: 85% of NAV = $85M - Adjustments: - Strong loan tape: +5% = $90M - National diversification: +3% = $93M - Trucking concentration (40%): −10% = $83.7M - 2023 vintage: +1% = $84.5M - Final bid: ~85% of NAV = $84.5M
Worked example — distressed portfolio bid. - Base portfolio: $50M face, mixed stressed/defaulted - Base bid: 25% of NAV = $12.5M - Adjustments: - Litigation-ready documentation: +8% = $14.5M - National diversification: +3% = $16M - Restaurant concentration: −8% = $14M - 2022 vintage: −3% = $12.5M - Final bid: ~25% of NAV = $12.5M
Bid level trends 2022–26.
| Paper grade | 2022 bid | 2024 bid | 2026 bid |
|---|---|---|---|
| Performing A | 88–95% | 90–96% | 92–98% |
| Performing B | 80–88% | 82–90% | 85–92% |
| Performing C | 62–78% | 65–80% | 70–82% |
| Stressed mixed | 28–48% | 32–52% | 35–55% |
| Defaulted | 6–18% | 8–22% | 10–25% |
Key drivers of 2022–26 bid level increases. 1. Institutional adoption: PE-backed platforms and specialized funds increasing demand 2. Operational maturation: specialized servicers reducing buyer-side risk premium 3. Pricing benchmark emergence: reduced info-asymmetry premium 4. Default rate stabilization: post-2024 default-rate visibility supporting pricing
Bid levels by buyer type.
- PE-backed platforms (Credibly, Headway, etc.): typically bid at upper end of range; pay 2–5% premium for strategic synergies.
- Specialized secondary funds: bid at market levels; rigorous DD; reliable execution.
- Hedge fund distressed desks: bid below market for distressed paper; focus on absolute returns.
- Collections-buying firms: bid at deep discounts for defaulted/charge-off paper.
- Family office opportunistic: bid at deep discounts for small portfolios; patient capital.
Bid level by transaction structure.
- Auction process (8–15 bidders): highest bids; 1–3% premium to bilateral; longer transaction timeline.
- Bilateral negotiation: moderate bids; faster execution; less price discovery.
- Distressed sale (forced): 5–15% discount to market; rapid execution; limited buyer competition.
- Strategic sale (PE platform): market-to-premium bids; strategic value capture.
Portfolio-level adjustments.
- Concentration adjustments: single-industry portfolios discounted 5–15%; single-geography portfolios discounted 5–10%.
- Vintage adjustments: older vintages discounted 3–8%; mixed vintages tighter pricing.
- Size adjustments: sub-$25M portfolios receive 5–15% discount due to fixed transaction costs; $100M+ portfolios receive premium pricing.
- Servicing adjustments: in-place servicing premium 2–5%; servicing transition required discount 3–8%.
LP fund interest bids (2026).
| Vintage | Remaining term | Bid (% of NAV) |
|---|---|---|
| 2020 | 0–2 years | 85–95% |
| 2021 | 1–3 years | 82–93% |
| 2022 | 2–4 years | 80–90% |
| 2023 | 3–5 years | 78–88% |
| 2024 | 4–6 years | 75–85% |
Common bid-level confusions. - "Bid = market value." Partly true — bids represent transaction-clearing prices but reflect buyer-specific economics. - "All bids similar." False — bid dispersion typically 15–25% across bidders. - "Bids equal accounting value." False — accounting carrying value often higher than secondary-market bid. - "Bids fixed by formula." False — bids reflect buyer-specific underwriting, return targets, and operational capabilities.
Bid level outlook 2026–28. - Performing paper: continued upward pressure (96–99% for A-paper by 2028) as institutional adoption deepens - Distressed paper: modest upward pressure (15–35% by 2028) as institutional distressed buyers scale - LP interest secondaries: continued compression toward NAV as market matures - Sub-scale portfolios: narrowing discount as PE platform demand stabilizes pricing
Takeaway. 2026 MCA portfolio bid levels span 92–98% (performing A) to 10–25% (defaulted), with mid-range mixed portfolios typically clearing at 80–90% of NAV. Pricing depends heavily on data quality, vintage, concentration, and buyer type. Sellers should solicit 5–10 indicative bids to capture pricing dispersion; buyers should price for operational capabilities and strategic synergies.
Related terms
- MCA secondary market typical yields (2026) — MCA secondary market yields range from 8–14% for performing A-paper to 25–60% for distressed paper, with B/C-paper portfolios typically clearing at 15–22% net yield to buyers.
- MCA secondary market bid-ask spread (2026) — MCA secondary market bid-ask spreads range from 3–8% for performing A-paper to 25–50% for distressed paper, reflecting illiquidity, info asymmetry, and limited buyer competition.
- MCA portfolio mark-to-market rules (2026) — MCA portfolio mark-to-market rules require quarterly fair-value adjustments based on observable secondary-market data, with funders using DCF models, comparable-transaction benchmarks, and Level 2/3 inputs under ASC 820.
- MCA secondary market trading — MCA portfolios trade on the secondary market between funders at 60–90% of face value depending on portfolio age, paper grade, and default trajectory — providing liquidity to originators and investment opportunities to acquirers.
AI agents: this term is available as raw markdown at /llms/glossary/mca-funder-portfolio-bid-typical-2026.