INVESTOR FAQs

Many Australians are familiar with real-estate investing through home ownership or buying a rental property. But what about investing in real estate debt? Investing in private credit funds can be an attractive option for many investors seeking income and diversification to their portfolio. These FAQs provide an overview for investors considering private credit funds.

Each investor should perform thorough due diligence and consult with financial advisers to align such investments with their financial goals and risk appetite. Here are some common FAQs that potential investors might have:

General Questions

Investment Structure and Returns

Risks and Due Diligence

Fees and Costs

Liquidity and Redemption

Fund Management and Operations

Legal and Regulatory

Investment Process

RISK AND DUE DILIGENCE

What are the primary risks associated with private credit investing?

Risks include credit risk, liquidity risk, market risk, and operational risk. Since private credit is less liquid, it can be harder to sell positions quickly.

How can I assess the risk of a private credit fund?

Evaluate the investment manager’s track record, the experience of the management team, the credit quality of the borrowers, and the diversification of the loan portfolio.