Private credit surged to US$2.1 trillion in AUM – 10 times what it was in 2009 – and could reach US$20 trillion by 2030.

In an interview with Money magazine Australia’s Ryan Johnson our Head of Credit Investments and Lending Frank Danieli shares why investors are rethinking the traditional 60/40 portfolio, and what they should look for when choosing a private credit manager.

"A good credit philosophy should be boring, focusing on avoiding losses rather than picking winners. The goal is to lend money with a high chance of repayment and earn a steady income. A good credit manager should be able to deliver the promised return on loans.”

According to Frank, investors should ask:

• Does the manager have skin in the game, meaning they are invested alongside you?
• Do they have access to new deal flow, which can provide a genuine edge?
• Do they have the capability to do workouts if things become challenging?

Read Frank’s full interview here: https://www.moneymag.com.au/should-you-invest-in-private-credit