Our CIO Will wrote in the AFR about the Bathla collapse, what it exposes about property private credit built on cheap money and rising prices, and why asset-backed private credit sits on the other side of this storm. Read more about it here.
The collapse of Bathla Group has prompted a broader conversation about the private credit sector. Writing in the Australian Financial Review, Eldium's Chief Investment Officer Will Wong highlighted that private credit is not one thing, and that investors should be asking harder questions of their managers. He identified three in particular. We answer them here.
Does the manager have their own capital in the fund — genuinely aligned with investors — or are they collecting fees on other people's risk?
Eldium's founders have (as of the date of publication) $12.9 million of their own capital invested in the Fund — over 20% of total fund size. This capital sits behind Class A investor units and absorbs losses first. Similarly, investors receive income on their Class A units before the Eldium co-investment receives any return.
Do they have a real specialisation — deep experience in a particular sector or lending structure — or are they a generalist chasing whatever deal is on the table this week?
Eldium focuses on lending to specialist originators against diversified pools of asset-backed obligations — SME loans, consumer finance, and speciality finance. In particular, it does not lend for property construction or development. The Eldium team brings decades of experience in credit and lending, and this specialisation is reflected in every facility the Fund holds. This is not a broad mandate — it is a deliberate, disciplined focus.
Are they transparent about valuation methodology, concentration, and liquidity terms?
The Fund publishes a monthly report with full portfolio disclosure — facility-level holdings, concentration limits, arrears, and performance history. The investor portal, launching this month, will give investors direct, real-time visibility over their holdings. Redemptions are available monthly with 30 days notice, and liquidity terms reflect the short-duration profile of the underlying assets.
Will's article in the AFR sets out the broader context — why the Bathla collapse matters for the private credit sector, what risks are now becoming visible, and what separates the funds that will weather this period from those that won't. It is worth reading in full.
Read the full article in the Australian Financial Review ↗
This article is general information only. It does not take into account your personal financial situation and is not financial advice. The Eldium Income Fund is open only to wholesale clients under section 761G of the Corporations Act 2001 (Cth).