Titans of ASX investing eye private credit in race for diversification
Storied investment firms Soul Patts and Perpetual and hedge fund Regal have all revealed plans to deepen their exposure to the booming but controversial asset class.
They are three of Australia’s better known investment managers. And while historically known for putting money into ASX equities (some of it fleeting), all can’t resist the allure of private credit.
At the Macquarie Australia Conference on Wednesday Regal Partners’ chief executive Brendan O’Connor, Soul Patts' CEO Todd Barlow, and Perpetual CEO Bernard Reilly all made a point during their respective sessions to emphasise the desire to add more private credit capabilities into their businesses as a means of diversification.
O’Connor told Capital Brief on the sidelines of the conference demand from offshore institutional investors was the reason Regal, which owns Merricks Capital, was looking for more private credit managers to add to its stable.
He said these investors spanned Japan, South Korea, North America, Singapore and the Middle East, where it is difficult to originate loans with the characteristics of Australian agriculture, resources and natural assets.
