David Koch and Nehemiah Richardson discuss TermPlus, global private credit, and the importance of diversification
On Your Money and Your Life, David Koch interviews Nehemiah Richardson, CEO of Pengana Credit, about the rise of global private credit and its growing appeal for Australian investors through TermPlus, a retail investment product.
Key Points:
Global private credit is essentially lending-similar to bank loans-but managed by private credit managers. In the US and Europe, it’s a major funding source, making up 85% of corporate mid-market lending, compared to just 10% in Australia.
Traditionally, global private credit has been restricted to institutional investors like superannuation funds. If you’re in an industry super fund, chances are you’re already exposed to it.
TermPlus now makes this asset class accessible to everyday Australians, with a low minimum investment of $2,000 and a quick online setup (under 10 minutes).
It offers monthly income at floating interest rates, currently around 3% above the RBA cash rate- often better than bank savings rates.
It’s ideal for investors seeking stable returns without share market volatility.
Nehemiah shared his personal story: after selling his home, he chose TermPlus to park proceeds due to its capital stability and strong yield, avoiding the low returns of traditional bank accounts.
