AVCJ Private Equity Forum Australia & New Zealand 2024

Four Seasons Hotel, Sydney and Online

07 Mar

Private credit: The new megatrend?

Private credit is fast becoming the must-have asset class. Not only can investors leverage longstanding trends connected to the withdrawal of banks from traditional lending, but a higher interest rate environment means they get paid more in the process. LPs have plenty to choose from in terms of risk-return dynamics. However, the lingering question is whether GPs have what it takes to manage positions should macro conditions deteriorate. Experienced credit investors share their views.

  • Is the rise of private credit a cyclical or a structural phenomenon?
  • What questions should LPs ask when assessing different strategies?
  • How strong are the mechanisms intended to address downside risk?
  • What happens if there is a significant uptick in distress situations?