Private credit investment is gaining in popularity in Australia with returns sitting above 10 percent for senior secured debt. Tanarra Credit Partners expects robust growth in this asset class over the remainder of 2024 with potentially greater merger and acquisitions activity (M&A) pushing businesses to seek private credit funding while investors seek lower volatility.

Assets under management for the global private debt market sit at almost $2 trillion and this number is set to grow as banks continue to pull back from financing. Investors too are realising the benefits of this fixed-income asset class given less volatility compared to publicly traded corporate bonds, according to Tanarra managing partner, Peter Szekely.

“Private credit such as senior secured debt offers investors gross yields above 10 percent and this represents an attractive opportunity for investors to benefit from regular income, irrespective of the prevailing economic conditions.”

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