A short video which provides an introduction to Epsilon.  The three Co-Founders answer fundamental questions around why they started the firm, what we do, a summary of Epsilon’s investment process, the importance of covenants, what type of performance profile to expect and our approach to ESG.

Short video message commemorating the 2nd anniversary of the Direct Lending Fund that highlights the key features of Epsilon’s direct corporate lending strategy and showcases one of the borrower companies we are proud to have partnered with, Seven Miles Coffee Company.

Epsilon is pleased to announce that the Epsilon Direct Lending Fund has maintained its “Approved” rating from BondAdviser with an “Improving Outlook” as the Fund approaches its two year track record.

The Australian private credit market encompasses a broad range of strategies, including direct lending. It provides lenders and investors with exposure to companies, mostly private, and the risk/return profiles are very diverse depending on the risk of the borrower and loan.

Episode 7 | 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…

Episode 6 | Epsilon incorporates ESG into its investment decision making processes as a signatory to the UN Principles for Responsible Investing and what this does is guide how we run our business and how we make decisions about the borrowers we are going to lend money to. ESG is really important to our process because what it does is that it gates the loans we are going to make and tells us the industries we won’t be lending money to for example…

Episode 5 | We see a broad range of companies that come to us asking for financing and we see a lot of participants who provide financing to the market that talk up the value of having loans that are seen as senior secured but that’s dangerous because in making a statement about senior secured, you create a sense of security, of safety, and that’s not necessarily the case. Let me give you an example…

Episode 4 | 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…