Why private credit exists

Private credit has gone from niche to one of the fastest-growing parts of investing, but most people still don’t fully understand how it works, why borrowers use it, or where the risks sit.

In this episode, Bryce and Alec sit down with Balmain’s Henry Holm to unpack the private credit boom in Australia, why banks have stepped back, how non-bank lenders create value, and what investors should look for before backing a manager.

If you are interested in finding out more about how to Borrow or Invest with Balmain, then please visit balmain.com.au/equitymates.

In this episode:

00:00 — Why private credit is having a moment

01:24 — Henry Holm’s first investment lesson

02:25 — Why private credit exists

03:32 — How the Australian market has changed since the GFC

08:45 — A real-world private credit deal in Sydney

12:28 — Bank competition, underwriting risk, and red flags

17:30 — US private credit stress vs Australia’s market

22:59 — How to assess a private credit manager

26:56 — Red flags investors should watch for

28:06 — Best deal & best company you’ve ever discovered

29:47 — Investing resources and reading list

30:49 — Advice for young investors

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In the spirit of reconciliation, Equity Mates Media and the hosts of Equity Mates Investing acknowledge the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respects to their elders past and present and extend that respect to all Aboriginal and Torres Strait Islander people today.

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