Moat Risks: AI and US Expansion

Private credit has nearly tripled in 10 years but most investors still don’t really know what it is or why it exists. In this episode, we sit down with Nehemiah Richardson (CEO & Managing Director of TermPlus) to break down why private credit has grown so fast, where the risks actually sit, and what investors should look for if they’re considering the space.

In this episode:

00:00 Private credit 101: what it is, why it’s grown, and why “growth ≠ risk”

3:44 Why banks pulled back after the GFC (and how private credit filled the gap)

7:39 Australia vs US/Europe: why private credit looks different here

10:57 Capital stack explained: senior secured vs mezzanine vs equity (and why it matters)

17:19 “Quality is slipping?” How to assess managers + red flags

23:24 The next decade: consolidation, scale, and private credit becoming “normal”

29:50 How TermPlus works: terms, floating rate, diversification, and portfolio construction

Target Rates are set as a fixed margin above the RBA Cash Rate, which is variable over the course of the Term.  The issuer of units (Term Accounts) in TermPlus (ARSN 668 902 323) is Pengana Capital Limited (Pengana) (ABN 30 103 800 568, AFSL 226 566). Any advice provided is general in nature and does not take into account your particular objectives, financial situation or needs. Before investing in TermPlus, consider the PDS, TMD and further details on our website at www.termplus.com.au/important-information/.  Mercer Consulting (Australia) Pty Limited (ABN 55 153 168 140, AFSL 411 770), which is a wholly owned subsidiary of Mercer (Australia) Pty Ltd (ABN 32 005 315 917) (Mercer Australia) collectively referred to as Mercer. References to Mercer shall be construed to include Mercer LLC and/or its associated companies. ‘MERCER’ is a registered trademark of Mercer Australia.  ———

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