Be flexible
Our experience in private credit has taught us that a tailored approach, taking account of individual borrower’s needs, can be more successful – and more profitable.
But we know, also if you’re going to lend in such a manner, you must have a very experienced and connected team; a team that really understands the market and its drivers, and is capable of getting inside a business and its sector.
The fundamental question for us is whether we like the business. We can't invest in something we don't like – and we don’t mean the product or the service, but the company as a whole.
For our investors too, flexibility, when it comes to something like liquidity, is key. Investing in private credit can, by our experience, be lucrative and deliver significant risk diversification benefits across a portfolio. But the associated risks and illiquidity are not suited to all investors.
Meet the author
Lillian Nunez
Lillian is an Executive Director and Co-Head of IFM Investors' Australian Diversified Credit capability. She is responsible for joint management of key credit portfolios and credit product strategies. She also heads the team responsible for conducting credit analysis, due diligence, investment recommendations and portfolio asset management support to the Debt Investments Team.
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