We’re proud to share that the Epsilon Direct Lending Fund has received an Investment Grade rating from research firm Lonsec.
Key quotes from the review:
Epsilon offers a robust investment process, providing investors with a 'pure-play' corporate lending strategy, free from real estate exposure. Co-founders Mick Wright-Smith, Joe Millward and Paul Nagy bring deep experience in Australia’s corporate middle market, with strong alignment of interests between the investment team and Fund investors.
The Manager’s senior leadership team is highly regarded. Senior members are finance professionals with over two decades of experience in corporate lending (deal origination, finance, execution and management) across a number of business and credit cycles.
Pleasingly, the Manager made significant investment into operational expenses ahead of AUM, which place the firm in good stead going forward.
The clarity of the Fund's investment philosophy to a targeted segment of the Australian private credit market is considered to be a benefit of the Fund.
Pleasingly, Epsilon produces quarterly reporting which depicts a detailed breakdown of portfolio composition and underlying loan performance to investors. The Manager has a clearly defined investment allocation policy.
Epsilon has imposed a capacity limit of A$3bn on the Fund. Epsilon states the capacity limit is to ensure the Fund remains nimble and astute on deal selection within the Australian market, based on their prior experience of managing middle market corporate lending portfolios to that size in CBA. It is pleasing to see a capacity limit in place given many peers do not state one. Given the strategy size, there are no capacity concerns and the Fund has ample room to grow.
If you would like a copy of the report, please email investors@epsilondl.com.au