Growth and Risks in the Australian Private Credit Market: ASIC Report
The report uses a broad definition of private credit: non-bank, non-consumer lending that is not publicly traded or widely issued, covering everything from senior secured loans through to mezzanine, special situations and real estate development finance.
Globally, private credit now sits at around US$2.5 trillion of assets under management and has roughly quadrupled over the decade to 2023.
In Australia, estimates put the market at roughly $200 billion, with:
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40–60% in real estate (much of it construction and development)
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20–40% in corporate/commercial lending
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10–30% in asset-backed/securitised structures.
Private credit emerged as banks pulled back from higher-risk lending after the GFC and as superannuation and private wealth chased higher yields in a low-rate world. Done well, it fills a genuine funding gap for businesses and projects that can’t access bank or bond markets on acceptable terms.