FEAR & GREED | Business News Interview: The $US1.7b deal that signals where lending is heading
Jun 1, 2025
Private credit is undergoing a fascinating transformation, with a surge in co-lending partnerships. A significant $1.7 billion joint venture between MA Financial, Monroe Capital, and SMBC aims to revolutionize loan origination. The focus on middle market lending highlights its appeal to companies with substantial EBITDA. Strategic collaborations could reshape the lending landscape in Australia. With the rise of flexible capital providers, the future of private lending looks promising, suggesting a robust growth trajectory in the coming years.
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Partnerships Elevate Private Credit
- Co-lending partnerships combine top loan origination and underwriting skills for stronger portfolio management.
- This collaborative model extends private credit's capabilities beyond direct competition with banks.
Targeting Middle Market US Loans
- The $1.7 billion JV targets US middle market companies with EBITDA between $10M and $50M.
- These loans have strong covenants providing downside protection for investors.
Australia Leads in Lending Partnerships
- Australia has world-leading asset-backed lending infrastructure fostering partnership models.
- MA Financial has executed significant joint ventures with banks and specialist lenders locally.