Epsilon Direct Lending

A great way to head into the holiday period! The Principles for Responsible Investment (PRI) recently released their 2024 Assessment Report. This is the second year that Epsilon Direct Lending has completed the Assessment and we are very pleased to have made significant progress on both a relative and absolute basis with our scores for 2024: ✔️ Policy, Governance and Strategy: 72/100 - 4 Stars  ✔️ Direct - Fixed Income - Private Debt: 93/100 - 5 Stars ✔️ Confidence building measures: 100/100 - 5 Stars As an asset manager, Epsilon Direct Lending invests capital on behalf of our clients with their long-term interests in mind. We believe that responsible investment and business success go hand in hand, and as such, we have embedded consideration of Environmental, Social and Governance (ESG) matters throughout all stages of our investment and portfolio management policies, processes and procedures. From origination, due diligence and risk assessment to ongoing monitoring and reporting, ESG factors are thoroughly evaluated and factored into our investment decision-making.   We are resolute in our commitment to support middle market company borrowers who share our values. We are committed to transparency in our responsible investment practices. We communicate openly with our stakeholders, including investors, borrowers, and industry bodies about our ESG commitments, progress, and challenges. Our responsible investment journey is marked by a commitment to continuous improvement.   To view our Public Transparency Report, please visit this link to our website: https://lnkd.in/ga6wPEr7 #directlending #privatecredit

We’re back from a Sling around Singapore! 🌏✈️ The Epsilon Direct Lending team visited Singapore for the Global Alts Asia Conference at the stunning Marina Bay Sands Hotel. The conference was a fantastic platform to connect with investors, and we’re thrilled to report strong interest in Australian direct lending. It’s clear that the demand for performing corporate credit is growing, and Australia’s stable economy and robust regulatory environment are making it a highly attractive market for Asian investors. After two days of thought-provoking discussions and strategic meetings, we capped it off with a classic Singapore Sling at the iconic Long Bar and, of course, indulged in the city’s famous Singaporean Chilli Crab - deliciously messy, just like navigating today’s dynamic M&A landscape! A big thank you to all the incredible people we met - looking forward to exploring potential collaborations and taking these exciting opportunities forward. #GlobalAltsAsia #AustralianPrivateCredit #AlternativeInvestments #Networking #Singapore #MarinaBaySands #SingaporeSling #ChilliCrab

It's a private party! Yesterday, our Co-founder Paul Nagy joined an engaging panel at the H&B Wealth Symposium in Torquay to discuss the pivotal role of private credit in M&A and Private Equity leveraged buyouts. The discussion highlighted the valuable synergy between direct lenders like Epsilon Direct Lending and private equity firms in these transactions, as well as the strategic importance of debt and equity capital for companies and investors alike. In today’s market landscape, being a senior secured lender to high-performing, growth-oriented companies – many backed by reputable PE investors – can be a good place to be. Thank you to our fellow panellists for the discussion, Lucy Hannemann and Adele Brown for putting on such a great event and the conference participants for their engagement. #directlending #privatecredit

Some noteworthy observations below from our review of NAB’s full year results today. They demonstrate that the major banks are not retreating from lending, despite what you might hear from other private credit funds. Per NAB’s results presentation, total business lending has grown 29% over the last four years and per their Pillar 3 reporting you can see that their corporate exposures have grown across almost every industry over the last six months.   Why is it that so many credit funds are therefore suggesting that the banks are retreating? We suspect that it’s a convenient way of explaining drivers of growth in their target markets. These target markets are more likely the areas where banks have never or rarely sought to gain lending exposures, such as funding small warehouses for consumer lenders, or lending to companies which are not profitable and cannot offer real estate as security.    At Epsilon, we focus on lending to performing and profitable businesses seeking debt capital to support growth-related activities such as acquisitions. We therefore typically compete against the major banks on lending opportunities and have seen firsthand how focused they are on growing their lending portfolios to performing corporate credit. Thankfully, we have strong relationships across the Australian corporate loan market and our customers value what we offer: Efficiency of decision making, Certainty of funding and Direct access to decision makers who are also business owners. Our relationships are a critical part of what we believe drives the outcomes we are proud to have delivered to date*.   *past performance is not a reliable indicator of future performance. Capital is at risk.

Joe Millward recently sat down with Giovanni Amodeo from Mergermarket Debtwire to talk about the evolution of private credit in Australia. Joe offers a fascinating perspective, drawing from his extensive experience in both the UK and Australian markets. Here are some key takeaways: - Private credit in Australia is poised for continued growth, particularly in the underserved mid-market segment. - Talent acquisition is crucial, with a focus on attracting professionals from banks, private equity, and debt advisory firms. - A potential recession could lead to market consolidation, creating opportunities for experienced firms like Epsilon. - The industry needs to improve transparency and standardise information for investors. - Epsilon is exploring new strategies, including green infrastructure and energy transition. - Global private credit funds and insurers are likely to enter the Australian market, attracted by the superannuation industry.

It’s wonderful to be recognised by industry peers, but even better to be a part of an evening of fun and supporting a good cause Alternative Future Foundation. Epsilon Direct Lending was proud to be a finalist in the "Best Emerging Manager" category and “Best Video” at the 2024 Australian Alternative Investment Awards & Hedge Funds Rock Event last night. Congrats to all the winners and finalists. 👏 AIMA - The Alternative Investment Management Association Alternative Credit Council #DirectLending #PrivateCredit

What a way to kick off Sydney Alternative Investment Week! David Elms from Epsilon Direct Lending was a panelist at the #AIMA #AlternativeCreditCouncil in Sydney. David and the panelists discussed the importance of risk management, defaults and workouts in managing #privatecredit portfolios. At Epsilon we believe that risk management begins with good asset selection, that direct and trusted relationships with borrowers ensure continuous information flows, and that early assessment of challenges allows for effective intervention.  #AIMAEvents #AlternativeCredit Council #PrivateCredit #DirectLending

For professional and wholesale investors only. Past performance is not a reliable indicator of future performance and should not be relied upon. We are delighted that the Epsilon Direct Lending Fund has been upgraded to Recommended by BondAdviser. In their Fund Research report, Bond Adviser noted "The Founding Partners at Epsilon have worked together at other top bracket firms for many years, across which they have originated and managed billions of middle market financing. Each member of the team has decades of great experience, not just in structuring and pricing deals at origination, but also in managing and restructuring loans through default cycles."   The Report also noted "....this Fund has met all of the necessary requirements to be upgraded....". "Returns for the past two years have be in line with the target and the Investment Team is well experienced to navigate a potential default cycle. We are comfortable with the Manager's commitment to industry practices of an excellent standard and the risk level of the Fund has been consistently in line with expectations for the returns target. "    A copy of the report can be found at https://lnkd.in/gFGTg7xW. Thank you to the team at BondAdviser. #privatecredit #privatedebt #directlending

For professional and wholesale investors only. Past performance is not a reliable indicator of future performance and should not be relied upon. We are delighted that the Epsilon Direct Lending Fund has been upgraded to Recommended by BondAdviser. In their Fund Research report, Bond Adviser noted "The Founding Partners at Epsilon have worked together at other top bracket firms for many years, across which they have originated and managed billions of middle market financing. Each member of the team has decades of great experience, not just in structuring and pricing deals at origination, but also in managing and restructuring loans through default cycles."   The Report also noted "....this Fund has met all of the necessary requirements to be upgraded....". "Returns for the past two years have be in line with the target and the Investment Team is well experienced to navigate a potential default cycle. We are comfortable with the Manager's commitment to industry practices of an excellent standard and the risk level of the Fund has been consistently in line with expectations for the returns target. "    A copy of the report can be found at https://lnkd.in/gFGTg7xW. Thank you to the team at BondAdviser. #privatecredit #privatedebt #directlending

🎉 Congratulations to Samuel Smith, CAIA on your well-deserved promotion to Senior Associate! This promotion recognises the significant efforts and contribution you have made to the Epsilon Direct Lending team. Here's to many more achievements in the years ahead! 🚀 #privatecredit #directlending