Episode 3 | Epsilon targets performing credit opportunities. Specifically, that means we like to lend to mid-market corporates who have a track record of earnings and can demonstrate it and have a strong and defensive position in their chosen sector. We predominately target senior secured lending and we like to be controlled lenders. We like to deal with our borrowers on a bilateral basis. Some of the sectors that sit in our portfolio currently include healthcare, education, telecommunications, food staple manufacturing. So this gives you a flavour for the opportunities that we target. They definitely sit at the defensive end of the credit spectrum.

Episode 2 | Offshore is certainly more mature and private credit has been in existence a lot longer, for example in the US, which is where private credit lending really started and that can bring good things, but it can also bring bad things as well. What I do know, is that right now in the US for example, enterprise values are at record highs, there has been a lot of money pumped into the system, there is a lot of capital trying to find a home. In addition to that, leverage levels are at an all time high. Structuring features within the US loan markets are at all time lows in my opinion…

Episode 1 | Corporate borrowers are attracted to Epsilon for a couple of key reasons. One of the key reasons is service. This is at the structuring of the loan solution but also through the life of the loan. Borrowers generally trust us because they know us. They’ve been working with us for a long time over many years. They are repeat customers and come back to do business with Epsilon. The other reason corporate borrowers are keen to work with us is flexibility around the loan structuring solution. So the two key reasons borrowers are keen to work with Epsilon are service and flexibility.

Data tell us that the US private credit market is more overheated than it was in 2007. This article dives in to the data and discusses a compelling alternative.

Are banks really retreating? Much has been written on the growth of the private credit asset class in Australia and for all the nuances between credit strategies there is one consistent message: that the market opportunity exists in large part because the banks are retreating from this traditional line of business, driven in turn by increasing regulatory pressures from the regulator.

In our latest podcast, we sit down with Jonathan Lim (Managing Partner, Liverpool Partners) to talk about all things ESG and Impact Investing. We discuss a number of topics including…

In a research report commissioned by asset manager Epsilon Direct Lending on the private credit market, the consulting firm Atchison examines the impact of including a range of private debt instruments within the fixed income allocations of superannuation funds under the Your Future Your Super (YFYS) regime performance tests and concludes that by including key components from the one-third of the credit market missing from the benchmark, performance can be improved without compromising tracking error and credit risk.

David Elms writes for Epsilon | Within the emerging asset class of Private Credit in Australia, fund managers vary widely in how they determine the credit rating of their loan investments. Methods range from nothing more than a finger in the air, a general assessment of key ratios, through to adoption of reputable third-party tools underpinned by a wholistic quantitative and qualitative assessment of the borrower and loan transaction.