Australia’s private credit growth story is just the beginning

InvestorDaily

Private credit is no longer a niche allocation, it is a core component of sophisticated portfolios – and nowhere is this more evident than in Australia’s real estate market. For much of the past decade, investors have navigated a sequence of shocks: pandemic disruption, inflation spikes, rate tightening cycles, geopolitical tensions, and equity market turbulence. Traditional portfolio construction models have been tested.

The once-reliable negative correlation between equities and bonds is arguably gone forever. Income has become harder to secure, and capital preservation harder to guarantee. This backdrop has provided the perfect conditions for private credit to come of age. In Australia, the market has surpassed AUD$220 billion in assets under management, growing nine percent year-on-year. Real estate private credit, in particular, is forecast to nearly double to $90 billion by 2029, according a review by Alvarez & Marsal late last year.

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