Priests, nuns and RSL clubs: Meet private credit’s unlikeliest investors
Fashion brands, religious groups, pie shops, charities and RSL clubs are parking millions of dollars in private credit vehicles run by the market's biggest managers.
What do the Burwood RSL Club, women’s fashion outlet Sheike and the charity arm of iconic food brand Sargents Pies have in common? They’re all going big on private credit.
Together, the trio invested $7 million into La Trobe’s newly listed private credit fund, ranking them as three of the 20 largest unitholders in the vehicle, according to ASX disclosures.
They, along with a string of Catholic and philanthropic organisations, have become some of the most unusual and prolific backers of an estimated $200 billion market which, according its supporters, offers investors higher yields than comparable investments such as term deposits, but with attractive levels of risk and volatility.
“Private credit wasn't even part of the discussion five years ago. Today there's significant interest from clients,” Kieran Berry, managing director of wealth advisory RiverX, which advises RSL clubs on their investments, told Capital Brief. “It’s a more sophisticated market.”
