Source: ausbiz
Date: 30 June 2026
Executive summary
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. He states that capital is reallocating from traditional fixed income and hybrids into private credit, yet investor education lags this growth.
Tom highlights that private credit is often misunderstood as a “cash-like” allocation, when in reality it is a risk-managed, income-generating asset class that operates through cycles and stresses the need for clear communication on credit cycles, risk, and structure so self-managed super funds, wealth managers and family offices fully understand what they are buying.
Key themes include:
- the increasing reallocation of capital within fixed income markets toward private credit alternatives
- the importance of transparency, communication, and manager-investor alignment in navigating credit cycles
- common misconceptions around liquidity, with investors needing a clearer understanding of structures such as open-ended funds, lock-ups, and gating
- the structural tailwinds supporting Australian real estate-backed private credit, including population growth, housing demand, and the scale of the underlying asset base.
Looking ahead, Tom notes that private credit is expected to continue gaining share in lending markets, driven by institutional and private capital flows, with long-term growth underpinned by strong fundamentals and disciplined management.
Watch the full interview below.
