Global credit giant Carlyle will facilitate superannuation fund lending to Australian companies as banks reduce exposure to longer-term corporate loans due to regulation.
From left: amicaa CEO David Wood, Carlyle Global Credit managing director Taj Sidhu, amicaa executive director Cathy Hales, Carlyle’s Jay Ditmarsch and amicaa’s head of private credit, David Hoskins.Carlyle will join the likes of Apollo Global Management, Blackstone and Ares Management in a growing private capital market and seek to attract super funds to invest in its funds, which will offer higher absolute returns as cash rates rise.
The global credit funds’ opportunity is a product of banks’ rigidity and tendency to look for loans that can be secured against residential property. Banks also seek to lend to highly rated companies over short terms, to reduce capital requirements – promptingMajor banks have sliced leveraged finance teams over the past decade and mainly look at corporate lending using overdrafts, or revolving credit facilities, which cap out around $25 million.
Source: Loan Digest (loandigest.net)
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Should banks be freed to lend with super?It would be a political decision to reduce the capital buffers protecting Australia’s banks in order that they can co-lend with super funds. Only with very strict oversight from an independent body
Source: FinancialReview - 🏆 2. / 90 Read more »
Chalmers’ historic super reformsThe Albanese government wants super funds to have greater involvement in funding affordable housing, a move that may challenge the obligations placed on trustees. Chalmers is not proposing to mandate any change in funds’ investment strategies - only to encourage more voluntary allocations of capital to affordable housing. The claimed tension with fiduciary duty does not arise. How about allowing me to use my super to fund 1 unit of affordable housing (2 bedroom unit) for myself. If that is not a go then why should my super my money fund it for others?
Source: FinancialReview - 🏆 2. / 90 Read more »
ASIC says crypto and climate regulation is comingASIC chairman Joe Longo told a CEDA lunch in Melbourne the corporate cop is targeting those that bring harm to consumers.
Source: FinancialReview - 🏆 2. / 90 Read more »
Sydney’s Litigation Lending passes the hat to fund legal stoushesSydney’s Litigation Lending Services (LLS), which bankrolls legal claims in exchange for a cut of the winnings, says it makes 62 per cent return on an IRR basis and has a 93 per cent success rate for completed cases. Bet their clients get SFA except perhaps nervous breakdowns
Source: FinancialReview - 🏆 2. / 90 Read more »
Banks out, super funds in at Labor jobs summitSuper fund bosses such as AustralianSuper’s Paul Schroder have been deemed more important than “Team Australia” bankers to attend the Jobs and Skills Summit. Chalmers proving beyond any doubt, what we all knew…. He is a lightweight Union funds preferenced at a Labor government Summit - what a surprise. Summit for mates and big donors
Source: FinancialReview - 🏆 2. / 90 Read more »
Expert’s warning on ‘nation-building’ superRetirement income review head Mike Callaghan says super funds must focus on delivering financial returns for members and not stray into risky nation-building projects. The AFR has been beating the same tired drum about industry super funds for decades, all while ignoring the facts that industry funds are required to put members first, consistently deliver far higher returns for members than retail funds, & are some of most trusted orgs in Oz. The whole super industry is too busy ticket clipping to worry about returns. It should be legislated that the compulsory super component cannot be used for high risk projects
Source: FinancialReview - 🏆 2. / 90 Read more »