Global Credit Investments’ Commercial Finance Fund rated 'Commended'
Alternative asset ratings firm Evergreen Ratings has given Global Credit Investments’ Commercial Finance Fund a 'Commended' rating.
The fund invests in the smaller end of the Australian private debt market, with loans ranging from $5 million to $30 million. As more borrowers seek funds outside traditional banking sources, non-ADIs, such as Global Credit Investments (GCI), have seen an increasing flow of potential lending opportunities.
“The market dynamics are supportive of attractive risk-adjusted loan pricing which presents an opportunity for a capital provider to earn excess returns,” Evergreen Ratings founder and chief executive officer, Angela Ashton, says.
With interest rates at record lows, investors are finding it difficult to invest in yield producing opportunities.
“Private credit is an asset class that can help to fill that portfolio need and we are seeing more and more of these types of funds approach us for consideration. However, these funds are not all the same. There are important nuances in lending practices and the types of borrowers each manager targets. It’s important to understand the risk each fund is taking and to ensure you are being properly rewarded for that," Ashton said.