Private Credit Insights
Episode 2 | Australian middle market direct lending vs offshore
Offshore is certainly more mature and private credit has been in existence a lot longer, for example in the US, which is where private credit lending really started and that can bring good things, but it can also bring bad things as well. What I do know, is that right now in the US for example, enterprise values are at record highs, there has been a lot of money pumped into the system, there is a lot of capital trying to find a home.
In addition to that, leverage levels are at an all time high. Structuring features within the US loan markets are at all time lows in my opinion. Having experienced the lows in 2007 its looking worse than what it was back then. So what does that mean? I can’t tell you whether we are at the top of the cycle, or whether the bubble is just about to burst, I don’t know when and how that will happen.
What I do know is that the domestic market does not carry any of those characteristics in the mid market which is where Epsilon focuses. We’re at very stable enterprise value levels, our leverage levels are low, our structuring is strong. We see real strong relative value in the domestic market.
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.
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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…