Private Credit Insights
Episode 5 | Are all senior secured loans the same?
We see a broad range of companies that come to us asking for financing and we see a lot of participants who provide financing to the market that talk up the value of having loans that are seen as senior secured but that’s dangerous because in making a statement about senior secured, you create a sense of security, of safety, and that’s not necessarily the case.
Let me give you an example. If a business is loss making, it might have wonderful revenue, products, growth trajectory, but it is loss making at the cash flow level, what is going to repay your loan?
At Epsilon we focus heavily on the sustainable predictable cash flows that companies generate, we make sure that’s been the case for a long time, we’re heavily diligent on the cash earnings, we’re heavily diligent on the value of the company when providing the senior secured loan, and that provides real value to the security we take.
If you would like to find out more, or would like to set up a meeting with Epsilon’s distribution team, please don’t hesitate to get in touch. Alternatively, please contact Paul, Mick or Joe directly should you wish to discuss a confidential transaction.
_
A note about our Private Credit Insights Series | We are releasing a series of videos over the coming weeks, so keep an eye on our blog or follow us on LinkedIn for the latest news.
ABOUT EPSILON DIRECT LENDING
Epsilon Direct Lending is an Australian based non-bank lender and private markets investment manager specialising in providing bespoke financing to high quality, credit-worthy Australian middle market companies. We are a highly experienced Investment Team with a proven track record and deep technical expertise. The Founding Partners have collectively originated, structured, privately negotiated and managed billions of dollars of corporate financings over their careers. We aim to provide flexible and creative financing solutions to middle market companies, while delivering attractive, stable returns for investors, in all cases operating with the highest levels of integrity, reliability, and transparency. More…