Private credit gives Scott's clients defensive income at yields well above term-deposit or government-bond levels, without taking equity-market volatility on the chin. The strategies on the BGW approved list focus on senior-secured first mortgages and senior-ranking corporate or agricultural loans, with conservative loan-to-value ratios and disciplined origination.
Direct lending, typically senior-secured first mortgages over Australian residential and commercial real estate, and senior loans to high-quality corporate, agricultural and infrastructure borrowers. Loans are originated, underwritten and managed by specialist non-bank lenders or institutional credit managers.
Three reasons. First, income, net target yields of 8–10% per annum, paid monthly or quarterly. Second, defensive characteristics, most strategies are floating-rate, with cash flows that rise with cash-rate moves, and capital is protected by real-asset security at conservative LVRs. Third, low correlation to listed equity markets, making private credit a useful diversifier in multi-asset financial plans.
Through Boston Global Wealth's approved manager panel, a curated set of non-bank lenders and institutional credit funds reviewed by BGW's Investment Committee. Scott uses these strategies inside SMSF, family-trust and personal-name portfolios where the liquidity and tax profile fits the client's broader plan.
Open-ended private-credit funds typically offer monthly or quarterly redemptions, subject to fund liquidity. Closed-end vehicles run 3–5 year terms with no early redemption. Key risks include borrower default, real-asset valuation declines, and gate / queue mechanics in stressed markets. Target returns are indicative, not guaranteed.
Scott will tell you straight. Whether it earns its place, how much would make sense, and how it fits alongside what you already hold.
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