A Pulse on Private Credit Investment in Australia 2025

Outlook on Private Credit in Australia

Our survey reveals over 90% expect continued growth in private credit's share of the corporate debt market in the next decade in Australia and Asia, with 50% anticipating significant growth.

Role of private credit lending 

• 64% said private credit is an important part of the debt economy and fills a lending gap for certain sectors that traditional financial institutions don’t necessarily want to service. 

• 21% said private credit lending forms part of traditional financial institutions lending strategies. For example, as customers or as potential syndication targets.

Most attractive sectors among investors

Real estate and consumer sectors are considered
the most attractive in the next decade

Biggest barrier to private credit growth

Borrower perceptions of high lending costs is considered the top barrier to further private debt growth in Australia among investors.

Regulation of private credit market

Is it fit for purpose? 

• 50% believe the current regulatory framework is fit for purpose, and 50% think some reform is needed.

• None said significant reform was required. 

Of the half that said some reform is required, the top areas of reform identified were: 

• licensing obligations 

• conduct requirements 

• capital requirements against lending activity 

Top benefits of private credit lending vs traditional lending

Top benefits of private credit lending

• more flexible terms;

• a greater willingness to accept risk;

• quicker and easier lending processes; and

• a willingness to lend to sectors not favoured by traditional lenders.

Top benefits of traditional lending:

• lower interest rates

• ancillary services (ie transactional banking, hedging), and

• a relationship focused approach

The role of private credit in the energy transition

When asked if private credit lending will play an equal, if not greater, role in lending for renewable energy projects compared to traditional financial institutions:

• 43% said it will play a greater role

• 43% said private credit will play a significant role, however traditional financial institutions will