Category: In the Media

THE INSIDE ADVISER
Australia’s private credit market has hit $235 billion in AUM, but investor understanding has not kept pace. Zagga’s Alan Greenstein argues the industry must do more to close the gap.

STOCKHEAD & THE AUSTRALIAN
As investors adapt to a changing market environment, resilience has become a central focus of portfolio construction. Ongoing geopolitical tensions, heightened volatility, rising rates and persistent inflationary pressures are driving greater attention toward assets capable of providing downside protection. Compounding the pressure is the rising correlation between traditional bonds and equities, with investors recognising that traditional portfolio construction may no longer be fit-for-purpose.

DEAL STREET ASIA
Geopolitical concerns and broader macro uncertainties are driving some major allocators to recalibrate their portfolios, including reducing what has traditionally been significant exposure to the US.

COMMO
Australian real estate private credit is attracting attention and capital from the ASEAN region as investors seek reliable income and increased diversification amidst global headwinds, according to the latest whitepaper research from specialist real estate private credit investment manager, Zagga.

NEWSFLASH ASIA
ASEAN investors are increasingly turning to Australian real estate private credit as a means of securing reliable income and diversification amidst global economic uncertainties. This trend is highlighted in a new whitepaper by Zagga, a specialist in real estate private credit investment. The research reveals that 49% of ASEAN investors intend to boost their exposure to private credit, a figure that is 10% higher than the global average.

SELF MANAGED SUPER
Private credit portfolio allocations remain popular among SMSF members, but a fund manager operating in the space has recognised more education is required for all investors interested in the asset class.

Zagga has noted SMSFs and high net worth individuals account for over 50 per cent of its assets under management, but also recognised more educational work is required to ensure individuals properly understand the risks and opportunities these types of investments present.

INTERNATIONAL FINANCING REVIEW
Some parts of Australia’s real estate sector may struggle to attract funding as private credit lenders become increasingly selective amid tougher market conditions and heightened regulatory scrutiny.

Real estate now makes up approximately half of the private credit lending market of around A$200bn (US$138bn) in Australia according to the Australian Securities and Investments Commission’s estimates and looks like it is headed for its first period of genuine credit differentiation with industry sources divided over whether the higher construction costs, forced revaluations and changes in underwriting will cause a slowdown in some real estate projects or just significant repricing of risk.

AUSBIZ
In this interview, Tom Cranfield, Executive Director at Zagga, discusses the rapid expansion of Australia’s private credit market and the projection it could surpass the Australian bond market by 2029. Cranfield states that capital is reallocating from traditional fixed income and hybrids into private credit, yet investor education lags this growth.

INVESTOR DAILY
Rapid private credit growth is drawing more investors but industry leaders warn education has failed to keep pace with the expanding demand.

Australia’s booming private credit market is attracting growing numbers of investors, but industry participants have warned that investor understanding of the asset class is failing to keep pace with its rapid expansion, increasing the importance of due diligence and manager selection.

Real estate private credit investment manager Zagga said Australia’s private credit market had grown to about $235 billion in assets under management, delivering a compound annual growth rate of 21 per cent over the past decade compared with around 5 per cent for bank debt and bonds.