PRIVATE CREDIT
What is Private Credit in Australia?
Private credit is lending provided by non bank institutions, fund managers and direct lenders rather than traditional banks. In Australia, private credit has grown substantially as banks have retreated from property development, special situations and mid market corporate lending.
- Direct lending: loans made by private credit firms to borrowers
- Mezzanine debt: subordinated lending between senior debt and equity
- Special situations lending for distressed or urgent transactions
- Asset backed lending secured against property or receivables
Private credit borrowers include property developers, mid market businesses, private equity sponsors and businesses in restructuring.
Private credit is typically more expensive than bank debt. The premium reflects speed, certainty and access to structures that banks cannot offer. This information is general only and does not constitute financial advice.