QIC’s Post

Australia’s private debt market is evolving rapidly, with diversification and specialisation reshaping the financial landscape. As businesses seek flexible capital solutions, private debt is emerging as a vital driver of growth and innovation across the economy. From direct lending to tailored financing solutions, the market is addressing funding gaps and supporting critical sectors like infrastructure, SMEs, and corporate expansion. Enhanced governance and transparency are further solidifying private debt’s role as a core asset class, attracting both domestic and global investors. Explore the future of Australia’s private debt market- https://okt.to/2CEjZO Sebastian Paphitis John Nestel #AMon #AlvarezandMarsalSEAA #PrivateDebt #EconomicGrowth #CapitalMarkets #Innovation

"The underlying motive of Debt-for-Development Platforms (DDPs) is that debt restructuring converts sovereign debt into blended investment pools that may fund scalable development interventions. This occurs as external debt is repurchased or reduced using concessional loans (ones made on terms more favourable than general market conditions) or guarantees. This frees up fiscal resources that are redirected into a trust-managed investment fund, with the proceeds used towards national or regional sustainable development goals, often with performance-linked structures."

In 2025, Australia’s private debt market surged past A$224 billion in AUM and is no longer the alternative, it is now well and truly a core lending segment. This year saw growth of 9% year-on-year, driven by a mix of emerging investor channels and the increased range of flexible and innovative capital solutions on offer. Industry consolidation is also intensifying, with top-tier domestic multi-asset managers now rising to a 27% market share, positioning the market for future growth and expected regulatory change. Explore the full report here: https://lnkd.in/gi_SX46i

Australia’s private debt market has entered a new era in 2025, surpassing A$224 billion in assets under management and firmly establishing itself as a core component of the lending landscape. In the following report, my colleagues Sebastian Paphitis John Nestel take a closer look at the forces driving this growth, from emerging investor channels to the rise of flexible capital solutions, and what it means for the future of the sector.

Private credit: continues to be extremely topical. We're seeing press articles, fielding client calls and reading regulatory findings/ guidance at pace. See the private credit report launched by A&M by Sebastian Paphitis and John Nestel which coincides with ASIC's heightened scrutiny and findings in this space.

“At A$224 billion and climbing, private capital is reshaping the future of finance and helping fund key drivers of economic activity. As competition increases and traditional funding channels recalibrate, private debt has emerged as a core segment of the lending market, better supporting the financing of Australian business, addressing a wider range of funding needs and offering more tailored capital solutions." - Alvarez & Marsal

In 2021, an innovative “debt-for-nature” swap by Belize showed how sovereign debt relief can be harnessed for sustainability. Aiming to convert debt into environmental investment opportunities, it executed a $553 million debt repurchase using a $364 million Blue Loan, at a 45% discount. The transaction allowed the country to redirect over $180 million towards long-term ocean protection, including a pledge to conserve 30% of marine territory by 2026.

Canada’s corporate debt market is evolving and private credit is leading the way. Assets under management in private credit are expected to nearly double by 2028, signaling strong lender confidence and reinforcing Canada’s reputation as a stable destination for global capital even in uncertain times. Bill Wu, Partner, EY-Parthenon shared insights with The Globe and Mail on what’s driving this shift and its implications for businesses. You can read the full article here: https://ow.ly/Z2g730sRez2 #EYCanada #EYParthenon #ShapeTheFutureWithConfidence

The ninth edition of the Private Debt Fund Survey reveals a market that’s not just growing – it’s evolving. With a 24.7% rise in AuM in just one year, Luxembourg’s private debt sector is gaining investor confidence and regulatory momentum. Reforms on carried interest and CIVs are turning fund structuring into a strategic advantage. Explore the full report here: https://lnkd.in/egVsjQsr #KPMG #FinancialServices #Transformation

Stakeholders have called for strengthened public debt transparency and accountability mechanisms in Zambia to ensure responsible borrowing and sustainable management of the country’s debt portfolio.