An investment that benefits from economic volatility and a unique proposition

Data crunched by Preqin and the Australian Investment Council says the number of private credit funds in Australia more than doubled between 2015 and 2021. The Reserve Bank of Australia says the potential size of the Australian private credit market alone is nearly $3 trillion. And while the major banks have traditionally controlled the lion's share of the existing SME lending market, that picture has been changing for the last few years. 

No wonder there are an increasing number of firms trying to get a piece of the action! For existing funds, that means you need to be doing something different to entice investors.

For the Keyview Credit Opportunities Fund, that means focusing on a specific part of the market (senior secured credit) and honing in on mid market sized companies that need capital quickly or who are outside the norm (special situations) and therefore underserviced by traditional lenders. 

"They might have an array of complexity about their asset base or their business, there might be a structural complexity that requires a unique skill set, or there might just be a timing issue," says Alex Hone, Managing Partner at Keyview.

"For that, our investors earn a very large premium over standard, traditional bank lending."

In this Fund in Focus, find out how Hone and his team are taking advantage of today's macro environment, the sectors where they have been finding opportunities of late, and how the fund generates returns. 

Timestamps

• 0:00 - Intro
• 0:30 - What makes the Keyview Credit Opportunities Fund different?
• 3:19 - How would you evaluate the private credit opportunity set?
• 5:08 - How do expected rate cuts impact your investment process?
• 6:37 - What is "senior secured credit"?
• 8:04 - Where are you finding the most opportunities at the moment?
• 9:55 - How do you balance high return targets with capital preservation mandates?
• 10:56 - How do you generate returns for clients?