In TCP’s first insights paper for 2024, TCP explore the outlook for 2024 and what could be an attractive opportunity for private credit regardless of what economic conditions prevail during the year.
In TCP’s latest insights paper, we take a closer look at one of our recent transactions to illustrate how we approach deal selection and underwriting – the foundations of constructing a portfolio that provide investors with consistent cash returns and downside protection. This continues to be important, particularly in today’s ever changing economic environment.
Graham Lees, Managing Director: Central banks are committed to containing inflation, interest rates are likely to stay higher for longer, and this means corporate credit deal activity levels picking up as a clearer picture around peak interest rates and inflation emerges.
Peter Szekely shares his insights into the current state of private debt, highlighting it as an appealing prospect for investors due to enduring high rates. He anticipates these rates to persist for the next 12 to 18 months, mainly driven by the mid 5% Australian inflation and tight labour markets.
Whilst TCP’s core focus is on Australia and New Zealand, we will also invest selectively in developed Asian markets. We take a closer look at why Asia stands out as a key focus region as Private Credit’s center of gravity shifts to this area.
