Investors are increasingly allocating funds to alternative investments like private credit to balance their portfolios and find a "natural hedge" against inflation, higher interest rates and economic uncertainty. At the same time, tighter banking regulations have created a massive $1 trillion capital gap in Australia that private lenders are rushing to fill. While the growth prospects are enticing, private credit can also carry risks, such as illiquidity, that investors must carefully navigate.
Keyview’s Justin Lal spoke with Livewire Markets to discuss what investors need to look for from a private credit manager when it comes to managing these risks and shared where he sees opportunities in the asset class.