Private Credit Insights
Episode 4 | How are loans risk rated
The way that Epsilon assess credit risk is actually as a corporate cash flow lending specialist and each loan that we assess we do it in a bespoke way. First and foremost, we look at the business and industry risk alone that the loan and borrowers are exposed to and we also look at the historical financials and undertake financial forecasting to really get our heads around how the loan might perform under a range of different financial outcomes and macro economic outcomes.
We integrate Moody’s risk analytics RiskCalc Plus which is a tool that allows us to measure credit risk and assign our credit ratings in a really transparent and consistent way and this is really important for investors, auditors, regulators who are looking for a transparent and consistent measure of credit risk in our portfolio and something they can understand and really get their head around as the private credit markets evolve.
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…