Private Credit - Booming Market or Systemic Risk?

Robert Baharian from Longview Capital Partners discusses the Australian private credit market, noting it's not new but often misunderstood. Robert feels there is an overreaction to the systemic risk warnings, seeing it as a small yet booming asset class compared to global markets.

He highlights the role of banks in facilitating private credit, although regulatory constraints limit direct involvement. Robert argues that private lenders are more engaged and manage deals closely, unlike banks that may focus more on repackaging.

Transparency remains a key issue, with many lenders providing selective information. Longview prefers private credit investments backed by hard assets like real estate, avoiding cash flow lending. Private markets serve as a diversification tool in portfolios, and investors should accept the illiquidity of this asset class.

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