How to Track Private Credit: Delayed Draws, PIK, and Distributions

How to track private credit is a loan ledger, not a yield screenshot from the GP portal. You already signed the commitment. Raziel's private credit deep dive is the thesis. This page is the book after that: commitment versus funded versus delayed-draw unused, cash coupon versus payment-in-kind (PIK), which increases principal, not cash, and the dates cash actually moved. The Federal Reserve Board (Cai and Haque, February 23, 2024) defines private credit as debt-like, non-publicly traded instruments provided by non-bank entities such as private credit funds or business development companies (BDCs).

This is not legal, tax, or investment advice. Raziel Holdings, Inc. does not provide it. Copy the credit agreement and the notices. Raziel's investing in private debt page is the asset-class overview.

Commitment, funded, and delayed-draw unused

White & Case (June 4, 2025): delayed-draw loans are committed, unfunded term loan facilities that give a borrower the option of drawing over an extended period (typically up to two years). ICLG Lending and Secured Finance 2026 (Davis Polk): unlike initial term loans funded in full on the leveraged-buyout closing date, delayed-draw commitments may be drawn during a specified availability period (often 12 to 24 months). Remaining commitments automatically terminate. Prepaid delayed-draw loans cannot be reborrowed.

Proskauer (August 1, 2024): a delayed draw term loan (DDTL) is a committed line of credit, usually labelled a capex, CAF, or acquisition facility. Interest expense is not incurred until drawn. Lenders typically charge a commitment fee on undrawn amounts. White & Case: the fund's capital is not deployed until the manager issues a capital call, and a private credit ticking fee often accrues at a fixed 1.00 percent per annum (sometimes after an initial holiday).

Two balances look alike and are not the same. LP unfunded commitment is the capital you still owe the fund. Delayed-draw unused is what the borrower can still draw. When the borrower draws, the GP may call LP capital. Log the unused balance down and the LP call as two events. ILPA Reporting Template v. 2.0 (January 2025) walks beginning unfunded to ending unfunded and says those figures should match PCAPs. ILPA's Capital Call and Distribution Template guidance (September 2025) applies to private credit funds, adds a standalone LP Unfunded Commitment section, and makes each transaction's impact on unfunded a required field. First delivery is Q1 2027.

Write, on day one:

• Fund record. Legal name, your commitment, capital called, LP unfunded.

• Facility. Borrower name, closing-date funded amount (the initial term loan).

• Delayed-draw unused. Commitment, undrawn balance, availability end date, unused or ticking fee from the documents.

• Link. A pointer from the LP call to the draw it funded. Do not post the same dollars twice.

Cash coupon versus PIK (principal, not cash)

IRS Publication 1212 (December 2025): qualified stated interest is stated interest that is unconditionally payable in cash or property (other than debt instruments of the issuer) at least annually at a single fixed rate. That is the cash coupon. Original issue discount (OID) is a form of interest, the excess of stated redemption price at maturity over issue price. Generally you include OID as it accrues each year, whether or not you receive any payments. Interest paid in more paper of the issuer is not qualified stated interest under that definition.

White & Case: PIK provisions allow borrowers to add the interest owed to the principal balance, instead of paying cash. Proskauer: the borrower adds the interest to principal and defers cash until maturity. Failure to make a cash interest payment is a default. Proskauer also describes synthetic PIK, or a Payment DDTL: when cash interest is due on the unitranche, the borrower draws the delayed-draw tranche to service it. Cash-pay interest is paid, but by adding more debt.

• Cash coupon. Cash in on the interest date. Principal unchanged.

• True PIK. Principal up by the PIK amount. No cash. Not a distribution.

• Synthetic PIK. Delayed-draw unused down, funded principal up. The "coupon" was a new loan.

Do not annualize a portal yield that mixes PIK accretion with cash received.

Distribution dates, interest dates, and what can still be drawn

ILPA (September 2025): a capital call or distribution notice is the GP's announcement of a required transfer of capital. For the LP, that notice starts monitoring, not the book. The template captures transaction types, amounts, and impact on LP unfunded. Name the company or investment when a distribution from a sale, dividend recap, or other income is recorded. Recallable distributions are inferred from that unfunded impact. ILPA's 2011 notice best practices still want use of proceeds itemized, plus each line's impact on unfunded.

Keep three date columns. Loan interest dates (cash coupon or PIK election) come from the credit agreement. LP distribution dates come from the notice. Delayed-draw unused that can still be drawn is live capacity with an availability end date, not a NAV. The New York Fed (October 17, 2025) notes that limited partners commit capital which is invested later as opportunities arise. That later draw is why unused delayed-draw still belongs on the ledger after closing. IRR is dated cash. Raziel's IRR calculator is cash-flow math. Feed it wires, cash coupons, and cash distributions, not PIK marks or unused delayed-draw.

The book is three columns, not a screenshot

A workbook holds this if the links hold: LP commitment, called, and unfunded on one row; loan funded, delayed-draw unused, and availability end on another; cash coupon received versus PIK added to principal, each with a date. It fails when unused delayed-draw is treated as already earning the coupon, PIK is booked as a distribution, or yield is copied from the GP portal.

Raziel's alternative-asset dashboard is the book those facilities already sit on: cash dates, documents, IRR and unrealized gains. Raziel does not value the loan for you and does not give tax advice. When a delayed-draw funds or a PIK toggle is elected, post the line that actually moved.