Private credit is non-bank lending where the debt is not publicly traded or widely issued publicly.
The Australian private credit market is largely divided into three main segments:
- Corporate/commercial – comprising mostly direct loans to a wide variety of businesses across the economy, and often including lending to businesses owned by private equity
- Asset-backed/securitised – comprising largely structured lending to or investment into tranched pools of assets such as mortgages and consumer receivables
- Real estate – comprising residential, commercial and office property, and including construction and development financing.