Private credit gives BG Wealth 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 portfolios.
Through Boston Global Wealth's approved manager panel: a curated set of non-bank lenders and institutional credit funds that have been reviewed by BGW's Investment Committee and accepted onto the APL. Strategies span senior first-mortgage real-estate credit, mid-market corporate lending, agricultural credit and select specialist niches. Most are open-ended with weekly or monthly investment windows.
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, all of which BGW's Investment Committee reviews before any allocation. Target returns are indicative, not guaranteed.
We'll 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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