International institutional investors are eyeing the lucrative Australian small to medium-sized enterprise business lending space, seeking relatively higher returns than in the more developed US market.
Co-founder Gavin Solsky says GCI is starting to see more interest from both offshore and onshore institutions, including local super funds,“What’s attracted them up to now is the relative risk-return equation. It’s far superior to what they’ve seen in the US market, partly that’s because the weight of capital in the US is so great it’s pushed returns down,” Mr Solsky said.Higher yields
“The banks are not going to get any less regulation, and it’s a very viable source of capital so I really see the Australian market going in that direction.”Mr Solsky said the low interest rate environment and increased awareness around diversification had led to strong interest among high net worth investors in Australia.