Nine years of disciplined growth in a changing market.
As we mark our ninth year, we reflect on a simple proposition that has guided us since inception: invest conservatively, back real assets, protect capital, and deliver consistent returns – and do it with trust, transparency, integrity, and a focus on execution at the core of everything we do.
Since inception, we have funded in excess of $3 billion in transactions, completed well over 250 successful exits across more than 350 loans spanning New South Wales, Victoria, Queensland and Tasmania. We have returned over $1.5 billion to investors.
For the current financial year, we will raise more than $1 billion in capital and lend very near to that amount, maybe a little more – importantly without changing our focus on quality.
Our fund metrics currently include:
Weighted average LVR
69.22%
Number of positions
107
Weighted average loan term to maturity
8 months
Construction / non-construction split
50% / 50%
Of our construction exposure
68% is more than 75% complete
(26% works complete)
Over this period, our team has grown from three people in 2017 to more than 50 today, with a presence across Sydney, Melbourne, Hong Kong, Singapore and the Philippines. Collectively, our broader team brings more than 300 years of combined credit experience, supported by established oversight and governance.
While Zagga is nine years young, the experience within the business spans multiple cycles and decades of market activity dating back to the 1960s. Since inception, we have navigated COVID, rate reductions and increases, regulatory changes, labour pressures, and now tax changes and geopolitical uncertainty. Through all this, we have unwaveringly honoured our commitments to investors and borrowers alike.
The current environment
We are operating in a market shaped by geopolitical upheaval, rising rates, increasing inflation, and a repricing of risk. This is not a crisis – it is a market cycle.
We are in a particularly challenging cycle, but one that also presents opportunity, especially for those seeking income.
Looking at the broader fundamentals, real estate remains a significant contributor to the Australian economy, accounting for 17% of GDP and representing the second largest employer nationally. The market is valued at approximately $12 trillion.
Australia is currently experiencing a structural housing shortage, most pronounced in New South Wales. In Sydney, only six dwellings per 1,000 people are being built, while skilled migration applications have increased by 25%. The undersupply is running at 100,000 homes, with vacancy rates at 1%.
At the same time, Australian GDP growth remains positive, with Sydney accounting for 28% of the economy and offering strong employment opportunities. Ongoing infrastructure development – including a second international airport, a second harbour crossing, new metro lines and an open CBD – continues to support long-term fundamentals.
While clearance rates may fluctuate, cycles are not new, and fundamentals always prevail over time. There will be more insolvencies, though data indicates that 90% occur in companies with turnover below $1 million – a segment we do not fund.
The role of private credit
Banks continue to represent approximately 83% of the Australian lending market, compared to around 50% in the United States. Regulatory constraints limit their ability to fund the full breadth of demand, creating a defined role for private credit.
Private credit has become an established part of the funding landscape – not as a lender of last resort, but as a provider of certainty. The focus remains on understanding each scenario, structuring appropriately, and delivering outcomes.
In this environment, disciplined, data-driven decision making distilled from intimate market knowledge and practical on-the-ground experience, is essential.
Our approach continues to emphasise shorter-duration investments, high-quality counterparties, frequent capital recycling, and diversified, structurally protected exposures.
We operate a semi-liquid structure with approximately two years of duration risk at the underlying portfolio level, supported by equity buffers of around 30% and natural liquidity from repayments and capital inflows.
Looking ahead
As we look forward, we believe our investment strategies remain robust and our processes are designed to withstand challenging conditions, while also positioning us to capture opportunity as it arises.
We would like to sincerely thank our investors, borrowers, partners, and the broader Zagga team for being part of the journey to date.
We look forward to continuing that journey in the years ahead.
