Case study: Supporting IPSI’s growth journey while generating an excellent IRR for the Privity portfolio

When fast-growing technology businesses reach an inflection point, traditional funding options don’t always keep pace. Bank lenders often require established profitability and long trading histories.

That was the environment when IPSI, an Australian payments technology business, sought growth capital. Privity Credit provided a tailored private debt facility to support IPSI through a period of investment and into the next phase of earnings. The transaction was introduced by Salter Brothers, who also invested equity in the business.

The result was a compelling example of private credit’s role in helping emerging businesses execute their strategy, combined with a clearly defined credit outcome for investors. Within a few years, IPSI completed a 100% sale to Commonwealth Bank of Australia (CBA), and Privity’s loan was repaid early in full.

The challenge: funding growth before profitability

Like many high-quality businesses investing in product, distribution and operating leverage, IPSI was still transitioning from build-phase to earnings. At the time Privity considered the opportunity, IPSI was not yet generating positive earnings, creating a gap between the company’s growth plan and what a bank lender would typically fund.

In situations like this, speed and certainty matter. Management teams want a partner who can underwrite the opportunity on its merits, structure risk appropriately and provide capital that supports the business’s growth strategy.

This is a scenario where private credit can add significant value. It can be designed to bridge a business from investment mode into stronger cash generation, while maintaining discipline around downside protection.

Understanding the business: underwriting in a technical value chain

Payments is a complex ecosystem, and this opportunity operated in the “plumbing” of the payments value chain. Privity’s approach was to focus on fundamentals: how the product creates value for customers, what drives demand and how the business is positioned to scale.

Privity’s edge: structuring for risk management and outcomes

The IPSI transaction highlights several capabilities that sit at the core of Privity’s private credit approach:

1) Comfort underwriting non-bankable situations

Bank appetite is often constrained when earnings are negative or still emerging. Privity’s investment process is designed to assess these situations and structure a facility that supports a business through a transition to stronger profitability, where appropriate.

2) Deep engagement with management

Rather than treating “technical” as a reason to pass, Privity leans into the work: engaging directly with management, asking detailed questions, and building conviction around product-market fit and delivery. This approach helps Privity move efficiently while still maintaining underwriting discipline.

3) Tailored structuring and alignment

Private credit is not one-size-fits-all. The role of the loan facility was to provide flexibility and support for growth while maintaining credit protections suitable for the risk profile. The transaction’s overall support package included equity investment from Salter Brothers, a firm well known and trusted by the Privity team, alongside Privity’s debt facility.

The outcome: early repayment following strategic acquisition

Using the equity and debt capital, IPSI continued to build out its platform and demonstrate the value embedded in its technology and systems. As the company matured, it became a more attractive proposition for strategic buyers.

The result was that in February 2026, IPSI completed a 100% sale to Commonwealth Bank of Australia (CBA), and the Privity loan was repaid early in full following the transaction.

For Privity investors, this transaction contributed an extremely attractive IRR to the portfolio.

Why this matters for investors

The IPSI transaction illustrates several reasons private credit continues to play an increasingly important role in portfolio construction:

• Real economy impact: Private credit can help fund growth businesses that sit outside traditional lending criteria, enabling innovation and expansion.
• Discipline and downside focus: Strong underwriting and structuring can create a return profile where capital outcomes are defined and measurable.
• Diversification: Private credit can provide a differentiated source of return relative to traditional asset classes including property, with a focus on income and capital preservation.

A repeatable approach

While every transaction is unique, the IPSI case study reflects a repeatable model: source high-quality opportunities through trusted networks; engage deeply with management; underwrite with discipline and structure facilities that balance flexibility for borrowers with robust protections for investors.

Privity Credit is proud to have supported IPSI on its growth journey and congratulates the IPSI team and Salter Brothers on an excellent outcome.