Our specialism means we truly understand our market and focus on it with all of the attention it requires and deserves

Our Point of Difference

We are specialists. We focus solely on lending to middle market companies on a ‘going concern’ basis.  We lend to companies with strong market positions, proven management teams and robust financial histories. We lend primarily against the ongoing, future cash flows and enterprise value of the borrower company.  

We are direct lenders. Investors choose us because of our ability to directly originate, structure and manage loans, without needing to outsource or negotiate those critical elements with banks.  We create solutions that are unique to each company.  We control the ongoing management of the loans without the need to agree changes with other lenders.  We capture the full economics of the loans as we don’t need to pay fees to banks to structure the loans for us.

The Market Opportunity in Corporate Lending

Direct lending is neither a novelty nor a new business. The major difference is that instead of a traditional bank lending to companies, markets have evolved where non-bank lenders are stepping into this role. The evolution is one of simple demand and supply: companies continue to seek growth opportunities and require financing, while at the same time traditional bank lending appetite has declined due to increasing regulatory and capital pressures, as well as a focus on simplified lower cost-to-serve product offerings.

Investment Proposition

Epsilon Direct Lending offers institutional and wholesale investors the opportunity to capitalise on the ongoing structural shift in lending market share from banks to non-bank financial institutions through the creation of managed funds that invest directly into hard-to-replicate, privately negotiated financings to high quality, credit-worthy mid-market Australian and New Zealand companies. 

Our investment products focus on providing investors with attractive, predictable and recurring income, capital preservation, low volatility and low correlation to other asset classes. Investors are attracted by the proprietary flow of high quality investments, a running cash yield and the attractive all-in risk-adjusted returns.

Investment returns are primarily generated from borrower fees and margins. Protections afforded by seniority in the capital structure, security/collateral, covenants, undertakings and diversification of loan portfolios mitigate the risk of loss of capital.  Given the illiquidity of the underlying loans, our direct lending investment strategy aims to generate a premium to the returns available in the broader syndicated corporate loan markets.

If you are a wholesale or sophisticated investor and would like to learn more about investment opportunities with Epsilon Direct Lending, please contact us.