SmallCaps Spotlight: Civitas Capital Management and the case for private credit in micro & small caps

## Episode overview Micro and small-cap equity markets can be unforgiving—dilutive raisings, slow capital deployment, and lenders who often avoid complex or time-sensitive situations. That’s where private credit can step in.

Co-founders of Civitas Capital Management, **Tim Wilson, Blake Velkovski and Haim Deitz**, join us to explain how Civitas structures **asset-backed, flexible debt solutions** for growing companies across the lower mid market.

## Key topics covered - **Why private credit matters** for emerging listed companies when equity funding is dilutive and bank appetite is limited - **Where risk is building vs easing** in the current credit cycle, including property stress and defensive sector opportunities (healthcare and natural resources) - **Deal size and pricing dynamics**: why larger syndicated credit can see spread compression, while **lower-ticket opportunities** can remain relatively attractive - **What “senior secured” means**: priority over assets, last-in/first-out capital dynamics, and sizing based on tangible collateral and recoverability - **How good vs bad transactions are assessed** through collateral quality, management capability, and the ability to recover capital even if the operating plan doesn’t play out - **ASIC’s enforcement focus**: the industry-wide push for improved **transparency and valuation reporting**—and what investors/advisors should look for - **Advisor due diligence framework**: alignment, fee/performance structures, trustee/oversight, investment committee governance, concentration limits, and workout experience

## What to take away Private credit isn’t just “credit”—it’s about **structure, collateral and governance**. For micro and small caps, it can offer a **non-dilutive** alternative to equity, while for investors and advisers it demands robust due diligence, particularly around valuation and reporting.

## Disclaimer This episode contains **general commentary** on the private credit market and should not be relied upon as financial advice or recommendations. Civitas Capital Management’s funds discussed are wholesale only and available only to sophisticated and wholesale investors as defined under the *Corporations Act*. Nothing in this podcast should be taken as an offer or invitation to invest.