Heading: Ausbiz: Why understanding the nuances of private credit matter
I joined Ausbiz to discuss the growing appeal of the private credit sector and why it is emerging as a popular investment option for retail investors.
Historically, private credit was limited to high-net-worth individuals, family offices, and institutions. However, in recent years retail investors have shown growing interest. Private credit can offer attractive returns, minimal market correlation and lower barriers to entry.
Investors, however, must ensure they conduct thorough due diligence when deciding which private credit fund to select. Key considerations would be researching the fund managers track record, understanding whether they are lending to property investors (high risk segment), what the average term of the loan is, and whether the loan is secured. These factors can impact the risk and return profile of the fund.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
