IT FEELS GOOD TO BE LOVED!
ROADNIGHT'S OBSERVATIONS ON PRIVATE CREDIT

It feels good to be loved! After years of explaining to anyone and everyone who would listen to what private credit is, it seems like now, everywhere you look, someone is commenting on private credit. Not wanting to be left out now that we have an audience, we wanted to provide our observations on where private credit sits and how we see it developing.

WHAT CAN WE LEARN FROM THE US?

The Australian economy does not operate in a vacuum. Rather, it is connected via travel, global markets and trade to the rest of the world (which in practice is primarily the US, EU, China and Japan). As we saw during the GFC, the performance of subprime housing in the US ended up impacting Australian banks and the share market.

UNEARTHING GREAT INVESTMENTS

Investing is not just about coming up with an idea. The reality is investment managers are evaluated on whether an investment makes money or not and is 100% measurable. There is nowhere to hide for ongoing underperformance.

LEVERAGING OUR DEEP EXPERIENCE IN FINANCING NON-BANK FINANCE COMPANIES

Roadnight Capital focuses on providing its borrowers with comprehensive and flexible capital solutions that help them grow and execute their strategic initiatives. While getting repaid means we must find another great investment, it is pleasing when our borrowers deliver on their business plans and effectively outgrow us.

PUBLIC VERSUS PRIVATE MARKETS

The general perception in finance is that private markets are riskier than public markets. This perception is most evident in rating agencies and regulators’ higher capital requirements for private market investments than public investments.