STOCKHEAD & THE AUSTRALIAN
Not all credit is created equal and thorough due diligence is essential. But, while prudent risk assessment is essential, investors must also separate fact from fiction. In private credit, persistent myths often cloud judgement and hold investors back from otherwise sound opportunities.
STOCKHEAD & THE AUSTRALIAN
In today’s evolving funding landscape, banks, government initiatives, and private credit each play a vital role. While public infrastructure is best driven by government, and banks continue to support traditional home lending, private credit investment firms like Zagga offer the flexibility and responsiveness needed to fund complex mid-market projects – bridging the gap where timing, structure, or risk profile may fall outside conventional parameters.
Melbourne currently ranks sixth among Australian capitals in property values, trailing Canberra, Adelaide, Perth, Brisbane and Sydney. Yet, at a recent investor event hosted by Zagga, a panel of leading industry voices noted, this relative affordability presents a strategic entry point for growth — particularly given the city’s strong fundamentals and development potential.
Renovation showcases ability and agility of private credit to support commercial development as the historic Invicta House in Melbourne’s Flinders Lane officially opens this month after a comprehensive renovation and expansion breathing new life into the 100-year-old building.
The rating was awarded to the Zagga Investments Lending Trust (ZILT), which now manages over $1 billion in active loans and has facilitated more than $2.5 billion in commercial real estate lending since inception. The Trust’s performance has remained robust, with predictable, transparent, consistent returns across its portfolio. The SQM Report confirms that Zagga’s lending platform and fund structure continue to offer ‘appreciable potential to outperform over the medium-to-long term,’ and cites the team’s deep industry experience, stringent credit processes, and strong borrower relationships. The report further highlights the firm’s purpose-built platform, sophisticated risk controls, and ability to offer investors exposure to mortgage-secured, short- to medium-term loans.
INVESTOR DAILY
In buoyant times, it’s easy to overlook the role of the steady and stable parts of a portfolio – the conservative income-generators that don’t make headlines. But these are exactly the assets that provide stability when everything else is in flux. Yet the traditional 60/40 portfolio is no longer proving a robust stronghold among record volatility. Traditionally, multi-asset portfolios have relied on the negative correlation between bonds and equities for diversification. However, increasingly, we are seeing a positive correlation in public markets. The year 2022 was an extreme example, where we saw significant correlated dips in both bonds and equities, and it is what we have again seen repeated in the most recent bout of market volatility.
AUSBIZ
Alan Greenstein, Zagga CEO & Co-Founder, points out a rising trend from public to private markets globally, hinting at Australia’s potential growth. With a new real estate credit fund in Singapore, diverse currency options and tax benefits await investors, Alan tells Ausbiz.
FINANCIAL STANDARD
Investment manager Zagga has unveiled a new real estate private credit fund that invests directly in quality prime commercial real estate across Australia’s east coast. Zagga chief executive Alan Greenstein reported “strong demand” from investors across the ASEAN region, and the company is “expanding its footprint to make it easier to invest with us,” Greenstein said.
Given current economic conditions, there is near unanimity that the RBA will resume its interest rate cutting cycle on 20 May with further interest rate cuts expected over the following 12 months. Low inflation, a soft economy and signs of a weakening in the labour market are all factors that has markets pricing in a cash rate below 3 per cent in the first half of 2026, down from the current 4.10 per cent.
STOCKHEAD & THE AUSTRALIAN
With ASIC shining a light on fast-growing private markets, finding the sweet spot between regulation and investor protection is critical explains Alan Greenstein, CEO and co-founder of specialist real estate private credit investment manager Zagga.
We would like to acknowledge the Traditional Custodians of the lands, seas, and communities in which we provide our services. We would also like to pay our respects to the Elders past, present and emerging, and the continuing cultural influence they have on Australia.
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
All portfolio numbers quoted correct as at 1 July 2025.
*Average investor return across the active portfolio as at 1 July 2025.
**Target return is after expenses and any applicable management fees for the year ended 30 June 2025. OCR = Australian Reserve Bank Official Cash Rate.
Past performance is not a reliable indicator of future performance and investments are subject to investment risk, fees and costs. Returns are not guaranteed.
Prospective investors wishing to invest in a Zagga direct investment or a Zagga Fund should fully consider the Information Memorandum, ZFF Fact Sheet and/or ZWF Brochure, available from Zagga, before applying to invest. Investments are subject to risks.
Articles on this website have been prepared by Zagga Investments Pty Limited (AFSL 492354) ACN 615 154 786 (Zagga) for information purposes only. It doesn’t take into account your objectives, financial situation or needs, nor is it intended as a substitute for any accounting, tax or other professional advice, consultation or service. Nothing in this article shall be construed as a solicitation to buy or sell any financial product, or to engage in or refrain from engaging in any transaction.
Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Economic conditions may change.
Any analysis provided in this article is based on information obtained from sources believed to be reliable but Zagga does not make any representation or warranty that it is accurate, complete or up to date. Zagga accepts no obligation to correct or update the information or opinions in it. Any opinions expressed in this article are of the author and is subject to change without notice. Readers are reminded to exercise caution and use their own judgment when interpreting and applying the information contained in this article No member of Zagga accepts any liability whatsoever for any direct, indirect, consequential or other loss arising from any use of such information.
