AltX chats to AusBiz TV on the private debt market doubling by 2025

October 29, 2021

October 29, 2021

October 29, 2021

AltX chats to AusBiz TV on the private debt market doubling by 2025

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Have analysts got it right? Nick Raphaely discusses the private debt market doubling on AusBiz TV.

With analysts predicting the size of the private debt market to double in 5 years, AltX discusses what is fuelling this growth and how this growth can only benefit both the capital market and investors.

With greater demand from borrowers and a growing awareness and confidence in the asset class from investors, AltX identifies three key factors fuelling increases in the private debt market.

  1. Construction: As construction ramps back up post-lockdown, builders will need capital… and private debt funding is a large and growing contributor to the construction sector in this country.

  2. Risk profile: Australia’s private capital market has one of the most attractive risk/return profiles in the world.  And because the underlying asset is often commercial or residential real estate, that is something most Australian investors understand and are very comfortable with.

  3. Institutional dollars: We have reached a tipping point in the private debt cycle in Australia where the institutions and super funds that stood on the sidelines and waited for the asset class to prove itself, are now writing cheques. And that will substantially grow the capital pools available.

There are a few key things at play in the capital market that is underpinning this growth of the private debt market.
The pie is getting large so there is a growing demand for capital. Concurrently, the banks’ share of the pie is diminishing with non-bank lenders now accounting for an estimated market share of 10% of the commercial lending market.

There is also a growing appetite for the private debt asset class from investors wanting higher yields. Investors are now being presented with the opportunity to earn significantly stronger returns than from bank term deposits or traditional fixed income.

With analysts predicting the size of the private debt market to double in 5 years, AltX discusses what is fuelling this growth and how this growth can only benefit both the capital market and investors.

With greater demand from borrowers and a growing awareness and confidence in the asset class from investors, AltX identifies three key factors fuelling increases in the private debt market.

  1. Construction: As construction ramps back up post-lockdown, builders will need capital… and private debt funding is a large and growing contributor to the construction sector in this country.

  2. Risk profile: Australia’s private capital market has one of the most attractive risk/return profiles in the world.  And because the underlying asset is often commercial or residential real estate, that is something most Australian investors understand and are very comfortable with.

  3. Institutional dollars: We have reached a tipping point in the private debt cycle in Australia where the institutions and super funds that stood on the sidelines and waited for the asset class to prove itself, are now writing cheques. And that will substantially grow the capital pools available.

There are a few key things at play in the capital market that is underpinning this growth of the private debt market.
The pie is getting large so there is a growing demand for capital. Concurrently, the banks’ share of the pie is diminishing with non-bank lenders now accounting for an estimated market share of 10% of the commercial lending market.

There is also a growing appetite for the private debt asset class from investors wanting higher yields. Investors are now being presented with the opportunity to earn significantly stronger returns than from bank term deposits or traditional fixed income.

With analysts predicting the size of the private debt market to double in 5 years, AltX discusses what is fuelling this growth and how this growth can only benefit both the capital market and investors.

With greater demand from borrowers and a growing awareness and confidence in the asset class from investors, AltX identifies three key factors fuelling increases in the private debt market.

  1. Construction: As construction ramps back up post-lockdown, builders will need capital… and private debt funding is a large and growing contributor to the construction sector in this country.

  2. Risk profile: Australia’s private capital market has one of the most attractive risk/return profiles in the world.  And because the underlying asset is often commercial or residential real estate, that is something most Australian investors understand and are very comfortable with.

  3. Institutional dollars: We have reached a tipping point in the private debt cycle in Australia where the institutions and super funds that stood on the sidelines and waited for the asset class to prove itself, are now writing cheques. And that will substantially grow the capital pools available.

There are a few key things at play in the capital market that is underpinning this growth of the private debt market.
The pie is getting large so there is a growing demand for capital. Concurrently, the banks’ share of the pie is diminishing with non-bank lenders now accounting for an estimated market share of 10% of the commercial lending market.

There is also a growing appetite for the private debt asset class from investors wanting higher yields. Investors are now being presented with the opportunity to earn significantly stronger returns than from bank term deposits or traditional fixed income.

With analysts predicting the size of the private debt market to double in 5 years, AltX discusses what is fuelling this growth and how this growth can only benefit both the capital market and investors.

With greater demand from borrowers and a growing awareness and confidence in the asset class from investors, AltX identifies three key factors fuelling increases in the private debt market.

  1. Construction: As construction ramps back up post-lockdown, builders will need capital… and private debt funding is a large and growing contributor to the construction sector in this country.

  2. Risk profile: Australia’s private capital market has one of the most attractive risk/return profiles in the world.  And because the underlying asset is often commercial or residential real estate, that is something most Australian investors understand and are very comfortable with.

  3. Institutional dollars: We have reached a tipping point in the private debt cycle in Australia where the institutions and super funds that stood on the sidelines and waited for the asset class to prove itself, are now writing cheques. And that will substantially grow the capital pools available.

There are a few key things at play in the capital market that is underpinning this growth of the private debt market.
The pie is getting large so there is a growing demand for capital. Concurrently, the banks’ share of the pie is diminishing with non-bank lenders now accounting for an estimated market share of 10% of the commercial lending market.

There is also a growing appetite for the private debt asset class from investors wanting higher yields. Investors are now being presented with the opportunity to earn significantly stronger returns than from bank term deposits or traditional fixed income.

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AltX is an online investment platform offering alternative income – generating investments, delivered seamlessly.

Disclaimers

AltX Pty Ltd (ACN: 618 796 115, AR no: 1270087), is an authorised representative of AltX Funds Management Pty Ltd (ACN: 113 502 604, AFSL no: 291314). The information on this website has been prepared for accredited wholesale clients – only who are interested in learning about the different products they can access via AltX. This information is factual information only. Any displays of potential investments are for example purposes only, and may not actually be available to investors. It does not take into account any of your personal objectives, circumstances or needs and does not constitute financial advice. Choosing an investment is an important decision and, before making any investment decision, you should consider obtaining financial advice, always read the disclosure documents as listed against every deal on the AltX investment platform and understand the associated risks as explained as on the AltX investment platform. 

Past performance is not an indicator of future performance. Expected or forecasted returns may not reflect actual performance. Any displays of potential investment opportunities are for sample purposes only, and may not actually be available to investors.

The information on this website does not constitute an offer to sell securities or a solicitation of an offer to buy securities. Further, none of the information contained on this website is a recommendation to invest in any securities.

AltX Pty Ltd is not a bank and is not regulated by the Australian Prudential Regulation Authority, and investing in AltX products is not the same as depositing money in a term deposit offered by a bank.

© 2024

AltX Funds Management Pty Ltd

AltX is an online investment platform offering alternative income – generating investments, delivered seamlessly.

Disclaimers

AltX Pty Ltd (ACN: 618 796 115, AR no: 1270087), is an authorised representative of AltX Funds Management Pty Ltd (ACN: 113 502 604, AFSL no: 291314). The information on this website has been prepared for accredited wholesale clients – only who are interested in learning about the different products they can access via AltX. This information is factual information only. Any displays of potential investments are for example purposes only, and may not actually be available to investors. It does not take into account any of your personal objectives, circumstances or needs and does not constitute financial advice. Choosing an investment is an important decision and, before making any investment decision, you should consider obtaining financial advice, always read the disclosure documents as listed against every deal on the AltX investment platform and understand the associated risks as explained as on the AltX investment platform. 

Past performance is not an indicator of future performance. Expected or forecasted returns may not reflect actual performance. Any displays of potential investment opportunities are for sample purposes only, and may not actually be available to investors.

The information on this website does not constitute an offer to sell securities or a solicitation of an offer to buy securities. Further, none of the information contained on this website is a recommendation to invest in any securities.

AltX Pty Ltd is not a bank and is not regulated by the Australian Prudential Regulation Authority, and investing in AltX products is not the same as depositing money in a term deposit offered by a bank.

© 2024

AltX Funds Management Pty Ltd

AltX is an online investment platform offering alternative income – generating investments, delivered seamlessly.

Disclaimers

AltX Pty Ltd (ACN: 618 796 115, AR no: 1270087), is an authorised representative of AltX Funds Management Pty Ltd (ACN: 113 502 604, AFSL no: 291314). The information on this website has been prepared for accredited wholesale clients – only who are interested in learning about the different products they can access via AltX. This information is factual information only. Any displays of potential investments are for example purposes only, and may not actually be available to investors. It does not take into account any of your personal objectives, circumstances or needs and does not constitute financial advice. Choosing an investment is an important decision and, before making any investment decision, you should consider obtaining financial advice, always read the disclosure documents as listed against every deal on the AltX investment platform and understand the associated risks as explained as on the AltX investment platform. 

Past performance is not an indicator of future performance. Expected or forecasted returns may not reflect actual performance. Any displays of potential investment opportunities are for sample purposes only, and may not actually be available to investors.

The information on this website does not constitute an offer to sell securities or a solicitation of an offer to buy securities. Further, none of the information contained on this website is a recommendation to invest in any securities.

AltX Pty Ltd is not a bank and is not regulated by the Australian Prudential Regulation Authority, and investing in AltX products is not the same as depositing money in a term deposit offered by a bank.

© 2024

AltX Funds Management Pty Ltd

AltX is an online investment platform offering alternative income – generating investments, delivered seamlessly.

Disclaimers

AltX Pty Ltd (ACN: 618 796 115, AR no: 1270087), is an authorised representative of AltX Funds Management Pty Ltd (ACN: 113 502 604, AFSL no: 291314). The information on this website has been prepared for accredited wholesale clients – only who are interested in learning about the different products they can access via AltX. This information is factual information only. Any displays of potential investments are for example purposes only, and may not actually be available to investors. It does not take into account any of your personal objectives, circumstances or needs and does not constitute financial advice. Choosing an investment is an important decision and, before making any investment decision, you should consider obtaining financial advice, always read the disclosure documents as listed against every deal on the AltX investment platform and understand the associated risks as explained as on the AltX investment platform. 

Past performance is not an indicator of future performance. Expected or forecasted returns may not reflect actual performance. Any displays of potential investment opportunities are for sample purposes only, and may not actually be available to investors.

The information on this website does not constitute an offer to sell securities or a solicitation of an offer to buy securities. Further, none of the information contained on this website is a recommendation to invest in any securities.

AltX Pty Ltd is not a bank and is not regulated by the Australian Prudential Regulation Authority, and investing in AltX products is not the same as depositing money in a term deposit offered by a bank.

© 2024

AltX Funds Management Pty Ltd