LGT Crestone warns of conflicts in opaque private credit fees
Head of private markets Martin Randall says private credit loan fees lack transparency, creating conflicts of interest and leaving investors in the dark.
One of Australia’s largest private wealth managers, LGT Crestone, believes private credit loan origination fees are too opaque and should benefit investors rather than fund managers.
LGT Crestone’s head of private markets, Martin Randall, told Capital Brief that alongside improved disclosure on asset valuations, he wants better fee transparency to emerge from the Australian Securities and Investments Commission’s (ASIC) review of public and private markets.
ASIC’s discussion paper on public and private markets highlighted the challenges investors face when assessing the value provided by fund managers — particularly due to opaque fee structures in private equity funds.
Randall said that in Australia, there are big question marks around upfront origination fees in private credit funds.
