Private credit has become one of the fastest-growing corners of Australian finance. With more than 100 managers now active in the market, capital is flowing into non-bank lending at a pace not seen in decades.
The idea of regular, consistent payments is a critical part of an income-focused portfolio. Ensuring that a portfolio actually looks and works that way across extended periods can take a bit more planning. It’s not as simple as bunging everything into a bond and taking a monthly coupon.
For decades, the ‘Big Four’ banks were the gatekeepers of Australia’s credit market. If you wanted a loan, you had little choice but to enter a bank branch, where options would be limited to that specific institution’s products.
In recent years, private credit has emerged as a mainstay source of income for many investors, particularly retirees. In an environment defined by persistent inflation, increasingly volatile equity markets, and rising interest rates, some investors have been increasing their exposure to private lending strategies offering yields of 7 to 10% or more.
The idea of regular, consistent payments is a critical part of an income-focused portfolio. Ensuring that a portfolio actually looks and works that way across extended periods can take a bit more planning. It’s not as simple as bunging everything into a bond and taking a monthly coupon.
For decades, the ‘Big Four’ banks were the gatekeepers of Australia’s credit market. If you wanted a loan, you had little choice but to enter a bank branch, where options would be limited to that specific institution’s products.
In recent years, private credit has emerged as a mainstay source of income for many investors, particularly retirees. In an environment defined by persistent inflation, increasingly volatile equity markets, and rising interest rates, some investors have been increasing their exposure to private lending strategies offering yields of 7 to 10% or more.
If you’ve ever opened a performance report from one of your investments and then been disappointed by the actual dollar amount hitting your bank account, you’ll be very familiar with the concept that fees erode returns.
It’s easy to see why private credit has grown exponentially in recent years. Investors have been forced to think differently about their portfolios to generate growth, income and maintain capital protection. The alternatives category as a whole has surged in popularity, with private credit accompanying the rise.
A quiet reallocation toward the private markets is reshaping Australian portfolios. It’s not an anti-public market rebellion. Liquidity, transparency, and governance still matter. But it’s a recognition that the public markets are no longer the whole market. More of the world’s future cash flows are now owned by private investors.
Genuine diversification strategies from marketing spin in alternative ETFs and Funds.
Diversification may be finance’s only free lunch, and Alternatives are often seen as an easy diversification fix for your portfolio. But, as with all things in life, you need to know what you are buying and what that actually means for your portfolio.
Savvy investors are always on the lookout for the proverbial canary in the coalmine, particularly when markets keep hitting all-time highs with seemingly unstoppable momentum.
The Australian private credit market has grown rapidly in recent years. Once considered a niche investment strategy, it has become mainstream, attracting capital from a range of sources seeking yield in a low-rate world.
The world of professional sports is undergoing a seismic shift, presenting unprecedented opportunities for investors. Previously the exclusive domain of billionaires, sports franchises have emerged as a unique and rapidly growing asset class, driven by robust business models, increasing media rights valuations, and the global appeal of sports as entertainment.
Alternative investments have done what alternative music did in the 90s: become so mainstream that their name doesn’t apply any more.
They are no longer reserved for institutional investors and the wealthiest of the wealthy. Alternatives have become a staple component of most high net worth individuals’ portfolios, and are increasingly showing up in mass market portfolios.
We investigate the sector’s growth drivers for a steer as to what’s coming…
For decades, the 60/40 portfolio—60% equities and 40% bonds—was the cornerstone of traditional asset allocation strategies. However, recent years have exposed the vulnerabilities of this approach. Private credit has emerged as a compelling solution
The rise of private market investing is continuing unabated with more and more individual investors allocating up to 20-25%+ of their portfolios to the asset class. This trend appears set to continue with a growing number of investors who don’t currently have private markets exposure actively considering whether it’s aligned with their investment plan and goals.
Recent private equity return data from Preqin reveals that growing divergence of private equity returns is the name of the game. That’s both good news and bad news for investors.
It means having the right private equity exposure is likely to remain fruitful, but ensuring you have the right exposure may take more due diligence than in the past. In other words, being informed as a private equity investor is more important than ever.
Private credit is having a 'Goldilocks' moment, with higher-for-longer interest rates driving double-digit returns. Once an overlooked investment class, Australia’s private credit market has exploded in recent years and is on track to reach $200 billion of assets under management, growing at a compound growth rate of 23% p.a.