The global credit giant sees “a multibillion-dollar opportunity to deploy capital in Australia” and will tap superannuation funds to invest in corporate loans.
Global credit giant Carlyle will facilitate superannuation fund lending to Australian companies as banks reduce exposure to longer-term corporate loans due to regulation.
From left: amicaa CEO David Wood, Carlyle Global Credit managing director Taj Sidhu, amicaa executive director Cathy Hales, Carlyle’s Jay Ditmarsch and amicaa’s head of private credit, David Hoskins.Carlyle will join the likes of Apollo Global Management, Blackstone and Ares Management in a growing private capital market and seek to attract super funds to invest in its funds, which will offer higher absolute returns as cash rates rise.
The global credit funds’ opportunity is a product of banks’ rigidity and tendency to look for loans that can be secured against residential property. Banks also seek to lend to highly rated companies over short terms, to reduce capital requirements – promptingMajor banks have sliced leveraged finance teams over the past decade and mainly look at corporate lending using overdrafts, or revolving credit facilities, which cap out around $25 million.
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