Merricks Capital’s funds often provide capital to asset-rich, cash-poor borrowers, offering solutions beyond the scope of commercial banks constrained by the current regulatory regime. A recent example of this is the Australian egg industry, which has been dealing with avian influenza disruptions and supply shocks.
Farm Pride is one example of a broader, growing private credit opportunity for downstream assets we’re seeing emerge where private credit can partner with these businesses as they enter a more normalised trading environment that is less driven by inflationary pressures.