Inside the shift from 60/40 to private alternatives

Fear and Greed Interview: Inside the shift from 60/40 to private alternatives

Source: Fear + Greed
Date: 28 April 2025

There’s been a surge in interest in private credit in recent years, even before volatility in equity markets reminded investors about the value of diversification and defensive assets.

Tom Cranfield, Zagga’s Executive Director, Risk & Execution, takes Sean Aylmer through the rise of real estate private credit:

“The original shift was driven by a change in regulatory rules. And that saw the banks change the amount of market share which they wish to have, particularly with regard to real estate. So project financing, which we are most exposed to… is very strong on providing construction finance to established developers within the middle market.

For us, that segment of the market, which had traditionally been dominated by the four major commercial trading banks in 2015, 2016, they started to recede their market share. And it’s the growth of that, driven by the withdrawal of the banks, that has established the private credit sector because you can get the returns in a manner that we believe to be safe, stable, consistent.”

Articles (including white papers and audio or video content) and FAQs on this website have been prepared by Zagga Investments Pty Limited (AFSL 492354) ACN 615 154 786 (Zagga) for general information only. They do not take into account your objectives, financial situation or needs, and are not a substitute for accounting, tax or other professional advice. Nothing in these articles or FAQs is an offer or solicitation to buy or sell a financial product, nor a recommendation to enter into or refrain from any transaction.

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The growth of Australia’s real estate private credit market is gaining significant attention, with the segment forecast to near $90 billion by the decade’s end. In this Ausbiz

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Zagga Market Pty Limited (Australian Credit Licence 490904) ACN 611 662 401 acts as the Servicer of loans acting on behalf of the credit provider, Zagga Investments Pty Limited (AFSL 492354) ACN 615 154 786, trustee of the Zagga Investments Lending Trust

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Articles (including white papers and audio or video content) and FAQs on this website have been prepared by Zagga Investments Pty Limited (AFSL 492354) ACN 615 154 786 (Zagga) for general information only. They do not take into account your objectives, financial situation or needs, and are not a substitute for accounting, tax or other professional advice. Nothing in these articles or FAQs is an offer or solicitation to buy or sell a financial product, nor a recommendation to enter into or refrain from any transaction.

Any analysis provided in the articles (including white papers and audio or video content) or FAQs on this website is based on information believed to be reliable, however Zagga does not represent or warrant that it is accurate, complete or up to date. Zagga is not obliged to update the information or opinions contained in any article it. Opinions are those of the author and may change without notice. Readers should exercise their own judgment when relying on information contained in the articles or FAQs. To the maximum extent permitted by law, no member of Zagga accepts liability for any loss arising from the use of such information.

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