Private Credit has emerged as a significant alternative asset class in the investment landscape.
Rising in prominence since the 2008 financial crisis, it provides a vital source of financing to businesses that may struggle to secure traditional bank loans.
Private Credit refers to non-bank lending whereby funds are provided directly to borrowers in exchange for interest payments.
This lending is typically facilitated by private debt funds, institutional investors, or hedge funds, and is not publicly traded.
Private Credit fills a gap left by traditional banks, offering flexible solutions tailored to borrowers' specific needs.
Private Credit encompasses various forms of financing, including:
The three main features of Private Credit are:
There are three main risks of Private Credit investing:
When assessing Private Credit, investors should consider:
Investors can invest in Private Credit through:
Investments usually have a time horizon of 2 to 5 years, depending on the structure of the debt.
Institutional investors, family offices, and high net worth individuals seeking higher yields.
Performance varies by fund and fund type. However, distressed debt can present unique opportunities to outperform during economic challenges.
Traditional lending usually involves banks or public institutions that follow strict regulatory guidelines, while Private Credit can involve more flexible terms and structures, catering to borrowers who may not fit into the traditional lending framework.
Advantages include potentially higher returns, less correlation to public markets, access to unique investment opportunities, and diversification of a portfolio.
Fund managers typically source Private Credit opportunities through extensive networks, relationships with investment banks, direct outreach to companies, and by leveraging market analysis.
Investors should assess the creditworthiness of borrowers, review the fund manager’s track record, evaluate the fund’s investment strategy, and understand the fees and terms associated with the investment.
No, private credit may not be suitable for all investors.
It’s typically recommended for seasoned investors who have a higher risk tolerance, longer investment horizons, and a strong understanding of the asset class.
Private Credit has established itself as a critical segment within the investment ecosystem, offering opportunities for enhanced yields and portfolio diversification.
Understanding its various types, features, and associated risks is essential for investors aiming to navigate this complex market.
With the right strategies in place, Private Credit can play a pivotal role in investors’ asset allocation.
The Aura Private Credit Income Fund (formerly the Aura High Yield SME Fund) is a credit income fund offering attractive monthly income from a well-diversified portfolio of debt securities including business loans.
The Fund invests in a portfolio of secured loans of $20m to $80m, in mid-market non-investment grade Australian corporates that are currently underserviced by banks and credit funds. (For Wholesale Investors Only)
The Fund operates in the health services sector predominantly in the business of facilitating the creation, and supporting the operation, of health services businesses in the Australian market.
The Trust is a leading fixed income product with a highly diversified portfolio of Australian debt assets with a strong bias towards trade and debtor finance and includes a global investor base. (For Wholesale Investors Only)
The Fund aims to achieve superior risk adjusted returns regardless of market cycles, with a focus on capital preservation, by investing in a diversified portfolio of private credit asset backed & cash flow lending investments (For Wholesale Investors)
Diversify your portfolio with private credit backed by Australian real estate and generate a regular income stream.
The Altor AltFi Income Fund provides investors with a return-maximising fixed income strategy via private credit investments. (for Wholesale Investors only)
The Fund is an unlisted managed investment scheme which invests in the development of residential land subdivision projects.
The Fund offers a co-investment opportunity in a diversified portfolio of senior secured corporate loans. (Available for Wholesale Investors Only)
When you invest in our private credit fund you not only have control and flexibility, but the choice of a secure long-term income through monthly payments or reinvestment plan.
Jameson TTB is an investment manager specialising in private debt and structured equity with a focus on Australian defensive real estate backed transactions. (For Wholesale Investors Only)
The Fund seeks to generate consistent monthly income for wholesale investors by investing primarily into unlisted credit securities that have the potential of generating income over the long term. (For Wholesale Investors Only)
The Aura Core Income Fund aims to preserve capital and offer stable monthly income from a diversified portfolio of predominantly small to medium enterprise loans.
The iPartners Credit Investment Fund aims to provide investors with a diversified portfolio of high yielding private credit assets including asset backed securities, corporate credit and property debt.
The Fund provides secured debt facilities to non-bank lenders and corporates with physical and/or financial assets that can provide asset backing. (For Wholesale Investors Only)
