Middle-market corporate direct lending fund manager, Epsilon Direct Lending, has launched the Epsilon Direct Lending Senior Loan Fund, the second fund for the group.
The new fund will invest in Australian conservative private credit strategies and Epsilon says it will focus on capital preservation and low volatility, as well as returns which have a low correlation to equity markets, traditional fixed income investments and other private credit strategies such as broadly syndicated loan focused funds.
"For this fund, investor appetite will be met via its portfolio of directly structured and documented senior secured floating rate loans to high quality, credit-worthy Australian and New Zealand middle-market companies," Epsilon founding partner Joe Millward, said.
Co-foundering partner said the manager has a strong flow of lending opportunities to help finance some of Australia's highest quality companies and private equity investors as they seek funding for growth and event-driven purposes.
"Inflation, high interest rates and a low GDP growth has impacted corporate cashflows, but the middle market remains resilient due to its more conservative borrowing levels and relatively lower exposure to imported inflationary drivers. Middle-market focused private equity dry powder is at high-levels with many sponsors now replenished in recent times. Our investment pipeline is as strong as ever," he said.