# MCA portfolio typical bid levels (2026)

> Typical 2026 MCA portfolio bids range from 92–98% of NAV for performing A-paper, 70–85% for mixed B/C portfolios, and 10–35% for distressed paper, with pricing depending on data quality, vintage, and concentration.

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.**

1. **PE-backed platforms (Credibly, Headway, etc.):** typically bid at upper end of range; pay 2–5% premium for strategic synergies.
2. **Specialized secondary funds:** bid at market levels; rigorous DD; reliable execution.
3. **Hedge fund distressed desks:** bid below market for distressed paper; focus on absolute returns.
4. **Collections-buying firms:** bid at deep discounts for defaulted/charge-off paper.
5. **Family office opportunistic:** bid at deep discounts for small portfolios; patient capital.

**Bid level by transaction structure.**

1. **Auction process (8–15 bidders):** highest bids; 1–3% premium to bilateral; longer transaction timeline.
2. **Bilateral negotiation:** moderate bids; faster execution; less price discovery.
3. **Distressed sale (forced):** 5–15% discount to market; rapid execution; limited buyer competition.
4. **Strategic sale (PE platform):** market-to-premium bids; strategic value capture.

**Portfolio-level adjustments.**

1. **Concentration adjustments:** single-industry portfolios discounted 5–15%; single-geography portfolios discounted 5–10%.
2. **Vintage adjustments:** older vintages discounted 3–8%; mixed vintages tighter pricing.
3. **Size adjustments:** sub-$25M portfolios receive 5–15% discount due to fixed transaction costs; $100M+ portfolios receive premium pricing.
4. **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)](https://fundnode.co/llms/glossary/mca-funder-secondary-market-yield-typical) — 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)](https://fundnode.co/llms/glossary/mca-funder-secondary-market-bid-ask-spread) — 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)](https://fundnode.co/llms/glossary/mca-funder-portfolio-mark-to-market-rules) — 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](https://fundnode.co/llms/glossary/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.

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