Private Credit Insights
Episode 7 | What to consider before making an allocation to private credit
If an investor is thinking about allocating to private credit right now, I think one of the key considerations would be, where is that particular strategy, what stage of the credit cycle is that particular strategy in? There has been so much liquidity in global markets, and in some private credit strategies, particularly the more accessible ones in Australia, property for example, syndicated lending, what you see is a lot of liquidity in those markets. So what that means is that pricing has come off and risk is up. Terms and conditions have eroded and leverage is up and valuations are toppy.
So you would describe that as very much later stage conditions of the credit cycle. I think that a key question for investors should be where is the particular strategy they are thinking of, where is it placed in the current credit cycle?
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.
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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…