Source: Investor Daily
Author: Adrian Suljanovic
Date: 31 March 2026
Zagga has raised another $25 million as volatile markets drive investors toward defensive, income-focused private credit allocations.
Zagga has secured an additional $25 million for its senior secured corporate note, taking total capital raised for the offer to more than $100 million as investors sought defensive income strategies amid persistent market volatility. The specialist real estate private credit investment manager said the four-year tap issuance, arranged by FIIG Securities, settled on 30 March and targets a yield of 7.85 per cent per annum.
It followed an initial issuance in December 2025 that was oversubscribed by 30 per cent.
Continuing market volatility and mounting global uncertainty have driven demand for defensive portfolio allocations and stable, risk-adjusted income, with the floating-rate structure also helping investors maintain their margin above the RBA cash rate.
“Increased volatility in financial markets, and the onset of a rate-hiking environment, have investors increasingly looking to defensive asset allocations and, in particular, floating-rate note exposures with solid yields from well-known brands,” FIIG head of debt capital markets and syndication Daniel Jones said
“This has driven rising demand for fixed income investments, which traditionally have offered investors a safe haven from more volatile asset classes."
“The Zagga corporate note provides the additional benefit of uncorrelated, multi-layer diversification, with returns driven from private credit investments in Australian commercial real estate opportunities. Senior credit, underpinned by quality, well-supported physical assets, is in high demand and can provide investor portfolios with an additional layer of protection.”
FIIG said it has partnered with Zagga since 2021 and has secured more than $130 million in funding across two corporate notes.
“This latest tap-issuance was in response to strong investor appetite for disciplined commercial real estate credit investment,” Jones said.
Zagga chief executive and co-founder Alan Greenstein said the new capital would be deployed into mid-market residential development projects along Australia’s eastern seaboard, in line with the firm’s investment strategy.
“Current market dynamics have created the perfect storm for experienced, specialist real estate private credit managers as investors seek to protect and diversify portfolios, without sacrificing returns,” Greenstein said.
“Quality, well-managed Australian real estate private credit investments can deliver this. The support of this note, and the recent tap issue, suggests investors are attracted to steady, transparent, non-correlated returns underpinned by well secured real estate assets.”
Since originating its first loan in 2017, Zagga said it has invested close to $3 billion across more than 300 transactions in the Australian commercial real estate sector, returning more than $1.5 billion via about 200 successful exits. The firm said it is targeting $5 billion in funds under management by 2030.
