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Kiro Georgy (KG): The purpose of building Greenlink Capital is really to focus on two things.
Number one, reliability and being able to give a client that assurance that this deal is happening or will find a solution to structure appropriately.
And number two is to really try to push out knowledge to the broker market on what private lenders and commercial lenders are able to do.
Rory Gazarian (RG) It’s making sure that this makes sense. We’ve mitigated the risks correctly. We’ve asked for the correct documentation from our borrowers and made sure that the risks stack up for that return.
If it doesn’t, we will push back. But we’re quick at pushing back. We’re transparent about that. It’s just making sure we can come to an outcome quickly.
KG: There is a cloud over the private credit space, and it’s because there was a period of overconfidence in the market where people were structuring loans without forecasting that things can change significantly. The budget changes were a huge part. The upcoming rate rises people are expecting are a huge part. And there was a bit of ignorance that things can change.
A disciplined credit team doesn’t assess a deal on what it looks like today. A disciplined credit team is still what it looks like one, two, three, four, five years from now.
Being able to stress test every side of a deal is so important. There’s no reason why a clever credit committee can’t come up with ways to achieve the client solution while making sure we are accounting for those different stress test areas.
“A disciplined credit team doesn’t assess a deal on what it looks like today. A disciplined credit team is still what it looks like one, two, three, four, five years from now.”
— Kiro Georgy
RG: We really work for the borrower because this is a very competitive space. At the end of the day, we want to make sure that we’re writing the right deals, but also looking after our clients and making sure that things stack up.
I do think there is this stigma with private lending of, “It’s very expensive and we’re trying to capitalise on certain events.”
For us, it’s about making sure the risks stack up. We’re doing the right thing, and we’re putting the borrower in a better position.
“For us, it’s about making sure the risks stack up. We’re doing the right thing, and we’re putting the borrower in a better position.”
— Rory Gazarian
KG: Private credit is the best business in the world to be in when you’re doing everything right. You provide such great solutions and you really help accelerate business growth.
With how the market has been over the last couple of years, from a lending perspective with the majors and the big banks, it’s really important that there are flexible solutions for business owners and investors to use. But if it’s used incorrectly, like anything else, you can have really problematic situations.
It’s really about making sure that when a BDM and credit team are looking at these deals, they’re putting in these safeguards, buffers to allow borrowers to have multiple exit strategies. We no longer request one exit strategy. We request two and then we come up with a third for the client prior to approving the deal.
RG: There’s a lot of market noise at the moment and a lot of uncertainty and being transparent but being accountable and giving people that assurance that you’ll get back to them. You might not always have the solution right on hand, but it’s about picking up the phone or sending an email to make sure that you’re updating people. Most people are looking for an update.
KG: Our goal is to work with brokers who are passionate about delivering the best result for their clients. Brokers who are passionate about making sure that their clients, businesses or investments prosper 10 years from now.
It’s never a one-and-done deal with us. If we have a client, the first goal is to assist in every single way we can and shape a product that fits them.
Tune in to hear more!
Find out more about Greenlink Capital’s approach to private credit in the In Focus podcast episode, ‘ In Focus: What brokers and investors need to know about private credit’, here:
Greenlink
3 min read