Yarra Capital’s Phil Strano warns investors to exit misvalued private credit
Strano says investors should withdraw from private credit if valuations don’t reflect reality, warning the market is showing signs of stress.
Investors who believe their private credit manager is not marking assets to fair value should withdraw their money, according to Yarra Capital Management, which says signs of stress are emerging in the sector.
Private credit is quickly becoming a focal point for scrutiny, with valuation and transparency among the top concerns — including for the corporate regulator.
Yarra’s head of Australian credit research, Phil Strano, told Capital Brief that there was a transparency issue with valuations, and that investors and that investors should be cautious if they suspect assets are being misvalued.
“If I'm an investor and I can get my money out at par as opposed to potentially waiting, whilst this lack of transparency evaluation starts to come through, I'm going to take my money now,” he said.
