Case Study: Private Credit in Crayon

INSIGHT #3

Woodbridge recently visited the BDO Brisbane office to run a Woodbridge Learning session with seven team members. The objective was simple: equip early-career professionals with the confidence, clarity and practical understanding needed to engage with private credit in their day-to-day work.

Rather than providing theory alone, the session focused on practical application — helping the team understand how private credit transactions are constructed, why certain decisions are made, and how quality lending practices translate to better investor outcomes.

WHAT THE TEAM GAINED

1. Clear explanations of complex structures
   Through real-world examples and simple breakdowns of security, loan ranking and monitoring, the team gained a tangible understanding of how private credit transactions actually function — beyond theory or definitions.
   Example: to explain loan ranking, we compared the capital stack to a queue, with first-mortgage lenders at the front getting repaid first, and each subsequent lender standing behind them, taking on progressively more risk.
2. A practical framework for assessing quality
   Participants were introduced to a way of thinking about private credit that supports better judgement: what questions to ask, how to identify quality lending, and how to spot unnecessary risk. This helps staff build stronger analysis and contribute more meaningfully to client conversations.
   Example: we used a quick checklist, like how the borrower will repay, what security is in place and what backup plans exist, to show how to spot good lending from risky lending.
3. Greater confidence in discussions
   The session equipped the team with clearer language and context, allowing them to engage in internal discussions and client meetings with more assurance.  a key skill as private markets become a bigger part of their workload.
   Example: by giving participants clear language to describe things like covenants, security and return drivers, they felt more equipped to contribute meaningfully to client and team discussion
4. A safe space to learn
   With an open format and real-time Q&A, participants were able to ask questions freely, clarify uncertainties, and develop an applied understanding without the pressure of more formal training settings.
   Example: with a safe space to ask anything, from ‘what does LVR really mean in practice?’ to ‘why would a borrower choose private credit?’ The team was able to clarify concepts they’d previously been unsure about.”

WHAT THE TEAM LEADER SHARED AFTER THE SESSION:

“Private credit is a unique and complex asset class… Your presentation was exceptionally clear and insightful, and the team greatly appreciated the way you unpacked such a complex topic for us.”

WHY THIS MATTERS FOR ADVISERS

Education-first sessions like this help emerging professionals build the foundational skills needed to navigate private markets with confidence. When advisers and staff understand how private credit works — not just what it is — they are better equipped to support clients, contribute to portfolio discussions and recognise the markers of quality and risk.

By breaking the topic down “in crayon,” the session helped turn a complex asset class into something practical, usable and immediately relevant for those starting their careers in financial advice and accounting.