Scarcity Partners

Australia’s private credit market is circa 5% of the total lending market compared to close to 50% in Europe and 80% in the US. Will Australia’s private credit market grow? This question and more were discussed at Scarcity Partners’ latest livestream: “Myth busting private credit: an allocator’s perspective”. To watch the full recording of Scarcity Partners’ Justin McLaughlin, Tim Samway and Evidentia’s Darren Beesley, visit: https://lnkd.in/gfFjUVtP

Bain's recent report on private markets forecasts strong tailwinds for private markets funds management businesses.   "...fee revenue for private market investments, at $0.9 trillion in 2022, should double to $2 trillion by 2032. Private equity and venture capital will continue to be the largest categories, with private credit and infrastructure investments expanding into sizable asset classes." https://lnkd.in/eMsVJHFp #privatemarkets #gpstaking

Private credit returns can be as high as 18% p.a. but as Evidentia’s Head of Portfolio Management ‑ Multi Asset Darren Beesley explains, investors should be considering the return per unit of risk. During Scarcity Partners’ recent livestream “Myth busting private credit: an allocator’s perspective”, Darren posited to Justin McLaughlin and Tim Samway of Scarcity Partners that risk can be assessed based on several factors, one of which is the pricing power of the lender.  To watch the full recording, go to: https://lnkd.in/gfFjUVtP  #gpstaking #privatecredit #alternativeinvestments 

The Industry Super Funds’ ad campaign from more than a decade ago used the Paul Kelly song “From little things big things grow”. And this chart of Australia’s listed investment managers’ market capitalisations shows just how large Australia’s investment managers have grown. The Scarcity GP Access Fund aims to identify the “big things” of the future by taking minority stakes in high growth, privately held investment management firms. The underlying thesis of our investment philosophy is captured in our article “Invest in the firm not only its funds” which you can read here: https://lnkd.in/eU3SFTcT. To find out more about Scarcity Partners and to consider investing in the Scarcity GP Access Fund, visit: scarcitypartners.com.   For wholesale investors only. #GPStaking #privatemarkets #alternativeinvestments 

We've had very strong interest in tomorrow's livestream on private credit. It's not too late to register and hear from Evidentia's Darren Beesley along with Scarcity Partners' Justin McLaughlin and Tim Samway. Taking an allocator's perspective, they'll be discussing an asset class that is attracting plenty of attention at the moment. This is not a livestream to miss. Register here: https://lnkd.in/gqi4WS44 #privatedebt #privatecredit #gpstaking

What to look for in the culture of a private credit fund manager   Scarcity Partners brings capital but also expertise which means we are entering a partnership and partnerships only work where there is cultural alignment. Part of a fund manager’s culture is their beliefs and behaviours around client-centricity i.e. do they put their investors first. Taking care of investors is part of what facilitates a fund manager’s success over the long-term so in the area of private credit, we assess fund managers as follows:   Transparency – The manager needs to be transparent with investors about where the loans sit in the capital structure and what modelling the manager has done to ensure the loan to value ratio is robust under various future scenarios. Alignment – When fees are structured to favour the fund and its investors not just the manager, it indicates the manager is client-centric and not just in business to enrich themselves. Skin in the game – The recent Alternative Credit Council global survey found 56% of private credit managers invest in their own funds (the Bank of International Settlements’ 2024 report found only 40% have skin in the game). Whichever figure is correct, it shows not all managers are committed to co-investment. We believe managers should invest in their own funds to deliver alignment.  Experienced team – The rapid growth of the asset class means some managers will have less experience managing private credit funds. It’s important that the investment team has significant years of sector experience, particularly through market cycles and unexpectedly challenging times. These attributes are how we think about Scarcity Partners’ investments in this sector. The Scarcity GP Access Fund is currently open for wholesale investors so if you would like to learn more about how we approach investing in fund managers, visit: scarcitypartners.com. #privateequity #gpstaking #privatecredit

Hot 🔥 topic - developing asset class. First of a number of Livestreams on Private Credit. Great to have Darren Beesley involved 👌

Join us for an exclusive discussion that promises to demystify the complexities of private credit from an allocator's rather than a fund manager’s perspective. Register: https://lnkd.in/gqi4WS44    In our next livestream, Head of Portfolio Management ‑ Multi Asset at Evidentia, Darren Beesley, joins Scarcity Partners Investment Director Justin McLaughlin and Chair Tim Samway to go beyond the hype and current market narratives to unpack private credit's strengths and potential weaknesses.    Why Attend?    Private credit has surged as an asset class of interest for all levels of investor, but it comes with its share of myths and misunderstandings. Justin, Darren and Tim will dive into the realities of private credit in Australia and what we can learn from more mature markets offshore.  You will learn more about:    The actual drivers of private credit’s rise beyond just structural changes in the banking sector What a “good” private credit fund manager and its funds look like given the recent proliferation of new managers in this market Views on how the market is likely to evolve in Australia as regulators take more interest in the sector.   Whether you're looking to dispel common misconceptions or to gain a clearer view of private credit, we invite you to join us. Register at: https://lnkd.in/gqi4WS44 #privateequity #gpstaking #investing #privatecredit

Join us for an exclusive discussion that promises to demystify the complexities of private credit from an allocator's rather than a fund manager’s perspective. Register: https://lnkd.in/gqi4WS44    In our next livestream, Head of Portfolio Management ‑ Multi Asset at Evidentia, Darren Beesley, joins Scarcity Partners Investment Director Justin McLaughlin and Chair Tim Samway to go beyond the hype and current market narratives to unpack private credit's strengths and potential weaknesses.    Why Attend?    Private credit has surged as an asset class of interest for all levels of investor, but it comes with its share of myths and misunderstandings. Justin, Darren and Tim will dive into the realities of private credit in Australia and what we can learn from more mature markets offshore.  You will learn more about:    The actual drivers of private credit’s rise beyond just structural changes in the banking sector What a “good” private credit fund manager and its funds look like given the recent proliferation of new managers in this market Views on how the market is likely to evolve in Australia as regulators take more interest in the sector.   Whether you're looking to dispel common misconceptions or to gain a clearer view of private credit, we invite you to join us. Register at: https://lnkd.in/gqi4WS44 #privateequity #gpstaking #investing #privatecredit

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