‘Marking their own homework’: Inside Australia’s $200b unregulated private credit boom: An investigation by The Australian Financial Review has found evidence that funds are reluctant to write off badly performing loans – and tell those invested. Others are paying themselves in fees more money than they hand over to investors. Some are even lending to companies that promptly go broke, raising questions about the thoroughness of due diligence.
...honestly we should be somewhat wary and worried about committing money to some of these funds which involves loans, private equity, commercial real estate, high yielding interest/returns type- obscure risk - there's no free lunch - what you get in higher returns can condemn you to obscure risks including redemption risk.
...to many retirees seduced by high yielding investment vehicles. And they typically have to commit for longer terms and signed up to terms which include the right of the fund manager to refuse redemption due to low liquidity.
