Foresight Analytics Rates the Zagga CRED Fund as ‘VERY STRONG’
The Zagga CRED Fund has been assigned a VERY STRONG rating indicating a very strong level of confidence that Zagga can deliver a risk-adjusted return in line with its investment objectives. Foresight Analytics & Ratings designation as a COMPLEX product indicates that the underlying assets require specialist investment skills to acquire, manage and monitor.
January 2026
Foresight Analytics has assigned a ‘VERY STRONG’ Rating for Zagga CRED Fund (ZCF) indicating a very strong level of confidence that the Manager can deliver a risk-adjusted return in line with its investment objectives.
Additionally, the Foresight Product Complexity Indicator (PCI), which considers the complexity of an investment product based on 10 risk factors, was assigned as COMPLEX for the Zagga CRED Fund.
"The Manager is well-placed from a resource perspective to achieve its growth ambitions. It is also very well placed from a systems, processes and structural perspective to do so – Zagga is an institutional-grade manager.
Zagga’s growth strategy, like its lending, is inherently conservative, which is prudent in the private debt sector."
Summary of the review
The Zagga CRED Fund (‘the Fund’ or ‘ZCF’) is a pooled mortgage trust established in January 2024 and managed by Zagga Investments Pty. Ltd. (‘the Manager’). The underlying investments are direct loans secured by registered first mortgages on property development, land development and refinancing of completed stock. The Fund is effectively a floating-rate investment strategy.
The Fund sits at the more conservative end of the first-ranked mortgage trust segment. It has a first mortgage secured, senior loan- only mandate.
The Manager’s preferred loan profile is for upmarket residential developments in city centres on the Australian eastern seaboard. The borrowers are highly experienced, reputable, and financially strong developers. Most of them are repeat borrowers with long-term relationships.
While Zagga was founded in 2017, the key members of the investment team are highly experienced, having been in this sector since before the GFC (Global Financial Crisis). Zagga currently has 4 funds operating in the non-bank Australian CRE debt (ACRED) space and has grown total FUM to $1.1BN as at 31st October 2025. The investor base is loyal and growing, materially comprising highnet- worth individuals (HNWs), family offices, financial advisors and institutional investors. More recently, the firm had material success raising capital in Asia via its Singapore vehicle.
We note that Zagga is a high-quality, institutional-grade investment manager that continues to execute its long-term growth strategy thoughtfully.
While the Fund is relatively new and the current FUM is circa $26.5M, portfolio diversification has been achieved by making ‘fractionalised’ loans into larger credit-risk-parameter-appropriate loans originated by the Zagga group. The latter are typically in the $5M-$100M range. This interaction with other Zagga funds creates a liquidity waterfall. At the group level, the firm manages $1.1BN FUM.
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Investment philosophy
While Zagga does operate across the property lending capital stack (senior, mezzanine, equity warrants), the latter two are only provided on almost a bespoke basis. Otherwise, Zagga's investment strategy is overwhelmingly conservative, specifically senior-only, short-duration bridging loans and, very importantly, to prime or bank-grade borrowers. Zagga targets strong borrower relationships and quality, which is reflected in their approximate 50% repeat business metric on loans.
Zagga targets low risk property development opportunities sought by large non-bank competitors and operates under a senior-loan-only mandate with an average LVR of 65%. With the entire loan book currently comprising loans of 12-24 months in duration, economic and property cycle risks are mitigated.
Investors can take reassurance from Zagga satisfying considerable due diligence assessments and ongoing monitoring from experienced independent third parties. The Manager has become a signatory to the Principles for Responsible Investment since September 2025, taking on additional oversight and compliance obligations related to responsible lending.
"Foresight Analytics note that Zagga is a high-quality, institutional-grade investment manager that continues to execute its long-term growth strategy thoughtfully."
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The Zagga CRED Fund – balancing risk management with strong returns
Zagga’s flagship, unitised solution provides investors looking for an alternative to shares and traditional fixed income and property investments, a CREDible avenue for portfolio diversification and regular, risk-adjusted income.