In a recent fireside chat, Nicole Kidd, the head of private debt, APAC at Schroders Capital, delved into the evolving landscape of private credit opportunities in Australia, offering valuable insights into the sector’s uniqueness and potential. With a rich background in capital markets, including a significant tenure at RBC Capital Markets before joining Schroders Capital in September 2020, Kidd brings a wealth of experience to the table. Schroders Capital, where she currently works, boasts an impressive $95 billion in AUM across various sectors, highlighting its global reach and expertise.

Kidd’s journey from London to Australia to spearhead Schroders’ private debt platform in APAC underscores her pivotal role in shaping the private credit market down under. Her leadership in establishing a multi-sector business focused on corporate acquisition finance, real estate, and infrastructure, alongside her recent appointment as Managing Director of Schroeders RF, a joint venture focusing on mid-market commercial real estate lending, showcases her instrumental role in the sector’s growth.

The discussion touched on several key topics, including the comparative analysis of private credit markets across the US, Europe, and APAC, the impact of regulatory changes on the Australian banking sector, and the emerging opportunities within the private credit space. Kidd highlighted the creditor-friendly environment in Australia, which presents a unique advantage for investors in the market.

Furthermore, Kidd addressed the evolving role of banks and private equity firms in Australia’s financial landscape, emphasizing the importance of relationships, adaptability, and a deep understanding of the market dynamics for success in private credit. She also shared insights into the challenges and opportunities in raising a private debt fund, stressing the importance of a proven track record and the synergy between banking experience and asset management expertise.

As the private credit market in Australia continues to mature, Kidd’s perspectives offer a valuable roadmap for investors and professionals navigating this space. With a keen eye on market trends, regulatory shifts, and the broader economic landscape, her insights underscore the potential for growth and innovation in Australian private credit, making it an attractive asset class for both local and international investors.

Key timestamps:

00:09: Introduction to ION Influencers’ Fireside Chats
00:35: Nicole Kidd’s Background and Role at Schroders Capital
02:47: The Uniqueness of Private Credit Opportunities in Australia
03:58: Education and Evolution of the Private Credit Market
04:47: Differences in Private Credit Markets
06:02: Impact of Regulation on Private Credit in Australia
07:42: The Future of Banking and Private Lenders
09:18: Role of Private Equity Firms in Australia
10:19: Secondary Sales in Private Equity
11:01: Workflow and Opportunities in Private Credit
12:13: Partnerships and Relationships in Private Lending
13:07: Factors Affecting Transaction Structure and Relationships
14:24: Active Management and Dialogue with Borrowers
15:28: Assessing the Quality of Counterparties
17:11: The Future of Bank Lending and Advisory
19:13: Talent Acquisition and Hiring Profile
20:40: Talent Requirements for Business Growth
21:03: Experience and Skills in Private Debt Business
22:42: Opportunities in Private Credit Market