Historically, access to middle-market direct lending has been limited for Australian investors. With the increase in market share shifting to private direct lending, an opportunity has been created to tap into this ever increasing market and for investors to earn higher yields on loans to this market.
The past 15 years has seen banks and other traditional providers of private credit reduce and dramatically scale back their direct lending in response to a raft of regulatory reforms. This has led the way for private debt funds to fill the void and provide flexible capital to borrowers.
In this paper we profile the opportunity available in Private Credit and why investors should look to allocate to this asset class.