With more than half of Australian total household wealth invested in property assets, investors need to think beyond real estate when it comes to private credit, according to Tanarra Credit Partners (TCP) managing director, Peter Szekely.

Szekely said this is especially the case when significant exposure to real estate, both commercial and residential, in Australia’s retirement savings is considered.

“Of the $4.2 trillion in superannuation at end 2024, nearly one-third is held in SMSFs.  Asset allocation data for the same period shows property represents 17 per cent of SMSF portfolios on average, only second to Australian shares at 27 per cent,” he said.

Just like any other asset class, investments in private credit also need to be sufficiently diversified.

“This is critical for successful portfolio construction. This involves spreading exposure across industries, borrower types, geographies, and assets to mitigate concentration risk and ensure a more stable return,” Szekely said.

“A well-diversified portfolio is better positioned to preserve capital and deliver more resilient, consistent returns throughout the economic cycle,” he added.

Click here to read the media release.

Tanarra Credit Partners Tanarra Credit Partners

Tanarra Credit Partners (TCP) is the private credit vertical of the Tanarra Group and was established in 2017. It operates offices in Sydney and Melbourne.

Information provided is general information and is for educational purposes only, and does not include, or constitute as, financial product advice.