Merricks Capital defends private credit as equity markets wobble
Merricks Capital has settled one of its most high-profile loans — Melbourne Place Hotel — and says workouts are a feature of private credit, not a bug.
Private credit is less noisy than equity markets, even when loan workouts are involved, according to Merricks Capital, a lender owned by Regal Partners.
The firm’s managing director for portfolio management, Geoff Davis, believes that despite market concerns, private credit “isn’t going anywhere” and demand for these investments is as strong as ever.
With US President Donald Trump’s trade war disrupting equity markets, Davis told Capital Brief that private credit has continued to perform, even through the current market cycle.
The $1.19 billion Merricks Capital Partners fund delivered an 8.1% return in 2024, despite an asset price correction in commercial real estate.
