An article posted on the ABC website on the 20th October 2025, “How bankers have learned to operate outside the rules in the murky world of private credit1,” has sparked important conversations about transparency and risk in the private credit sector. At Rhodes Asset Management, we welcome this dialogue and we’re proud to offer investors a clear, compliance-driven alternative, which is at the lower end of the private credit risk scale.
A Focused Approach in a Complex Market
Private credit is a broad and evolving landscape. While some firms pursue high-risk strategies (some with unsecured loans) or complex investment structures, Rhodes Asset Management takes a different path.
We manage the Premium Income Fund, a mortgage fund that provides our investors with comfort and peace of mind as our returns come from secured commercial loans backed by real Australian property. That’s it. No speculative, or unsecured lending. No convoluted schemes. Just straightforward, asset-backed lending with a focus on income generation and disciplined risk management.
What Sets Us Apart
1. Conservative Lending Philosophy
Our lending entity, Rhodes Finance, applies a strict and disciplined credit process:
- All loans are secured by registered first or second mortgages.
- We rely on independent valuations based on the current “as is” market value.
- There must be a clearly defined exit strategy by the borrower for the repayment of the loan.
- We do not provide traditional construction finance. In other words, all lending is secured against the property’s current “as-is” value. Construction finance, by contrast, depends on “as if complete” valuations, requiring the estimated future value of a completed development, which introduces additional uncertainty and risk (including possible insolvency of builders or developers).
2. Compliance and Governance First
As the Responsible Entity for the Premium Income Fund, Rhodes Asset Management operates under AFSL 464772 and adheres to a robust compliance framework:
- Rigorous loan approval process.
- Annual external audits and a dedicated Compliance Committee.
- Adherence with ASIC’s disclosure principles.
- Assets are held by an independent custodian, with a registered charge over the loan portfolio.
3. Transparent, Investor-Centric Structure
- The distribution rates we publish are nett of all fees. We don’t charge investors entrance and exit fees.
- Distributions are paid from actual interest income, not investor capital.
- Our PDS, Valuation Policy, and Unit Pricing Policy are available to all investors.
Why This Matters
In a market where some firms are pursuing aggressive or opaque strategies, Rhodes Asset Management offers clarity, discipline, and trust. We believe that private credit, when managed responsibly, can deliver strong outcomes for investors — and we’re committed to doing just that.
Looking Ahead
We’re proud of the role we play in Australia’s private credit market — and we’re here to help investors. If you’d like to learn more about our approach, our performance, or our governance practices, we invite you to explore our PDS or speak with our team.
Investment risk & Past Performance
There are risks associated with an investment in a managed fund. Whilst we endeavour to exercise due diligence and care in our conduct, we do not provide guarantees on any invested capital or the investment performance of the underlying managed fund. Past performance is not a reliable indication of future performance.
*Reliance on Product Disclosure Statement & Target Market Determination
Information about any of our financial products is contained in the respective product disclosure statement (PDS) and target market determination (TMD) accompanied by other disclosures we are required to make by law. You may obtain a copy of the PDS & TMD on our website or by emailing us at admin@rhodesam.com.au. You should not rely on any information that is not published by us.
Source:
1https://www.abc.net.au/news/
