Be prepared
When lending to any organization, there is always the risk it won’t be able to execute on its business plan. The most critical task for a credit investor is to avoid capital losses.
Debt covenants and review mechanisms are critical to structuring deals, especially those that present as more challenging and complex. So from the outset, we’re cognizant there will only ever be limited exit pathways. So, it’s important to have in place a means work with a borrower constructively if problems arise.
Being prepared means, when it comes to deploying capital, we can be selective: planning for the best outcome but ready in case things may not work out.
Meet the author
Hiran Wanigasekera
Hiran is an Executive Director and Co-Head of IFM Investors' Australian Diversified Credit capability. He responsible for joint management of key credit portfolios, credit product strategies and managing the day-to-day running of debt portfolios. Hiran has worked across a wide range of credit sectors and industries including bank lending, corporate credit and structured investments.
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