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.

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 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.

In our latest podcast , we sit down with Shane Young (Founder and Chief Executive Officer) and Adam Loriente (Head of Corporate Development, Strategy & M&A) from PETstock Group – a story that started 30 years ago with one store in regional Victoria to the present, leading privately-owned omni-channel pet specialty retailer with international operations.

Epsilon is delighted to provide an opinion piece on The Australian Middle Market Direct Lending Opportunity.

Epsilon is pleased to announce that the Epsilon Direct Lending Fund has recently received an “Approved” rating from BondAdviser.

Expectations are that 2024 is shaping up to be a stronger year for M&A activity than 2023, and we are certainly seeing this in our investment pipeline.

Mick Wright-Smith discusses how covenant lite loans are not prominent in Australian middle market corporate direct lending.

Non-bank business lenders are finishing the year strongly, with a number of recent capital raising initiatives by lenders operating through managed investment schemes and a recovery in the securitisation market in the second half of the year.

Credit quality assessment tools empower private credit fund investors, allowing them to draw their own conclusions.

Performing private credit due diligence is a fairly new discipline in Australia and best practice might not be obvious.  This article discusses common areas that diligence isn’t yet performed on when evaluating the asset class.

Mick Wright-Smith discusses the Treasury's Intergenerational Report on Ausbiz, emphasising the importance of direct lending in shaping the future growth of the Australian economy.

Australia’s onshore private credit market is still nascent but that’s one of its biggest strengths. Mick Wright-Smith speaks to Investor Strategy News.

Mick Wright-Smith from Epsilon Direct Lending commenting on the sixth Intergenerational Report and the forces that will shape the Australian economy over the coming decades.

Mick Wright-Smith from Epsilon Direct Lending speaking with James Dunn from The Inside Network about the future of the Australian private credit market.

Interview with Joe Millward (Founding Partner) outlining his advice to corporate borrowers seeking finance in the current environment.

Article highlighting the fundamental drivers of the Australian middle market corporate direct lending opportunity, and the role that direct lenders such as Epsilon play in this important segment of the economy.

Mick Wright-Smith from Epsilon Direct Lending answers quickfire questions with James Dunn from The Inside Network on private direct lending.

The announcement that Melbourne-based fund manager Epsilon Direct Lending has launched its second open-end corporate debt fund arguably represents a significant step in the maturation of private debt in Australia.

Article by Banking Day commenting on the launch of the Epsilon’s new Senior Loan Fund.

Article by the Australian Financial Review commenting on the launch of the Epsilon’s new Senior Loan Fund.

Article by Financial Standard commenting on the launch of the Epsilon’s new Senior Loan Fund.

Private lending is going mainstream as soaring inflation forces mid-market businesses to consider more flexible funding options than the traditional incumbent sources.

Article by Adviser Voice commenting on the launch of the Epsilon’s new Senior Loan Fund.

Media Release: Specialist Australian middle-market corporate direct lending fund manager, Epsilon Direct Lending, has launched its second fund, the Epsilon Direct Lending Senior Loan Fund.

Somnomed Ltd is a global leader in oral device therapy for Obstructive Sleep Apnea and is improving the lives of its patients across the globe. Epsilon Direct Lending is thrilled to be partnering with Neil Verdal-Austin and his team in providing finance to support the continued investment in product and market expansion.

When the banks won’t lend to you, or what they are asking for as security is more than you want to offer, where can an emerging or middle-market company turn to? “Australia is in a position where 90% of business lending is sourced from the regulated deposit-taking banks,” says Joe Millward, a founding partner of Epsilon Direct Lending.

Investors are being wooed towards private debt funds with the promise of attractive income in uncertain times, but some fund managers opt to keep their upfront fees, a strategy that has divided the sector.

Will stabilising interest rates drive M&A in Australia’s middle market? Joe Millward from Epsilon Direct Lending joins ausbiz to discuss the key details, including: What are the links between rate stabilization and inflation stabilization? Can borrowers afford the new rates? Are there any signs of stress in the middle market?

The local market has rallied to begin the week and Mick Wright-Smith from Epsilon Direct Lending says there are great investment opportunities in 2023. He says with a potential recession on the horizon it is more important than ever to look at the construction of your portfolio and ensure the negative effects of higher interest rates and inflation are mitigated.

Oriel Morrison from Stockhead TV discusses the Australian private credit market with Joe Millward, founding partner of Epsilon Direct Lending.

Drew Meredith from the Inside Adviser asks what professional financial advisers need to know in allocating to private credit including, benefits for clients, misconceptions, and manager traits.

Australian non-bank lenders are making incursions against the big banks, but have many considerations during the loan decision making process to ensure proper loan structuring.

The super funds have a strong interest in the economy performing well. But if they’re not allocating to private credit then there’s no competition to the banks and you don’t have a competitive credit market.

Australian superannuation members now can access high quality loans to Australian companies that have been the exclusive domain of the banks for far too long.

With corporate loans, the historically dominant position of the banks means developing an understanding of measuring credit risk across various private credit strategies is in its early stages. There are also really quite mixed views on liquidity risk in private credit.

We want to grow this market, because we believe we’re offering something that’s going to be highly beneficial to investors in Australia in the long-run – an income product that’s really quite defensive.

Investors do not get paid for taking operational risk and investing in Private Credit should be no different.

New corporate lender expects to back private equity deals.

Epsilon Direct Lending features in the latest edition of the AIMA Journal outlining the Australian middle market direct lending opportunity for investors.

The Epsilon Direct Lending Fund is now launched after a successful foundation offer.

James Dunn from the Inside Network asks about the impact of COVID-19 on middle market direct lending and investor interest in the strategy.

James Dunn from the Inside Network asks about launching our maiden fund and Epsilon’s market offering.

Epsilon talks to Alter Domus about the growth of the Australian market relative to offshore, and the importance of partnering with the right specialists.

Direct lending in Australia offers the transparency and legal structure advantages of Europe and the US, but with far less competition.

Epsilon’s strategy is based on backing performing and growing companies. Their loans are specifically structured and largely require the borrower to put the capital towards expanding their businesses, whether that is in the form of acquiring new businesses, opening new stores, or expanding overseas.

Mick Wright-Smith, Joe Millward and Paul Nagy from Epsilon Direct Lending go INDepth with James Dunn from the Inside Network.

Epsilon Direct Lending has secured a commitment from an unnamed private wealth firm, alongside various other private wealth groups and family offices, as it sets out to raise A$500 million ($388 million; €321million) for its debut fund from Australian investors.

IN60 with Paul Nagy from Epsilon Direct Lending. James Dunn from The Inside Network goes IN60 with Paul Nagy from Epsilon Direct Lending.

As Epsilon outlines in its white paper: The Australian Middle Market Direct Lending Opportunity, released (this week), lenders in the middle market or medium-sized-company sector must be “corporate cash flow lending specialists,” able to understand the nuances of the sector and business itself and craft agreements that both protect the lender and offer benefits to the borrower.

IN60 with Joe Millward from Epsilon Direct Lending. James Dunn from The Inside Network goes IN60 with Joe Millward from Epsilon Direct Lending.

IN60 with Mick Wright-Smith from Epsilon Direct Lending. James Dunn from The Inside Network goes IN60 with Mick Wright-Smith from Epsilon Direct Lending.

Epsilon differentiates themselves by focusing on a specialised pocket of this fast-growing sector.

Epsilon partners with Winston Capital Partners to distribute its Direct Lending Fund to Wholesale Investors…

After its formation late last year, Epsilon Direct Lending, a boutique manager focusing on a particular part of the burgeoning private debt asset class – the under-served $70 billion mid-market growth and event-driven financing space – is ready to go to the investment market with an institutional and wholesale fund.