Peter Szekely from Tanarra Credit Partners provides insights on the outlook of private credit in Australia. He shares that the current circumstances, including high financial asset valuations and low equity premiums, make it an ideal time to consider private credit as an investment. Peter highlights that recent rate increases have been particularly beneficial for private credit, especially in corporate loans, which are yielding returns comparable to equity, making them a highly attractive option.
Peter further delves into the company’s focus on the middle market corporate risk sector, which often encounters event-driven scenarios. This concentration allows them to offer lending services for intricate transactions typically associated with private equity. Looking to the future, Peter maintains a positive stance on the potential deal flow in the coming months, even considering the potential economic downturns.
Finally, he emphasizes the criticality of selecting a manager with a vast experience in managing through investment cycles, particularly in the context of shifting economic environments.