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.