Don’t split with Private Credit – open the relationship

The recent asset raising success of Australian Private Debt managers with a heavy bias to property related debt has been impressive. Many Australian investors have enjoyed the high level of consistent income and low volatility driven by infrequent valuations at par, regardless of the market environment. However, are cracks appearing? Australian Private Debt has faced intense media scrutiny and mounting regulatory pressure this year - highlighting downside risks in property debt, concerns over valuation approaches and whether liquidity has yet been truly tested.

Although the underlying instruments are primarily both senior secured and floating rate, not all private debt is created equal. We’ve explored the few similarities and many differences between two types of offerings, Australian Private Debt and Senior Secured Loans, focussing on portfolio holdings, valuation transparency and liquidity mechanisms.

Following ASIC’s recent review on the asset class in September 2025, our whitepaper, Demystifying Private Debt: The Good, the Bad and the Ugly puts forward why Senior Secured Loans are an ideal complement to existing Australian Private Debt allocations, in order to achieve a more globally diversified, fairly valued and liquid portfolio.