SELFMANAGEDSUPER
The recent experience of a fund manager specialising in private credit suggests more SMSF trustees are looking to include this asset class in their fund portfolios.
“This year since 1 July, that is the start of the financial year, over 30 per cent of the new entities that have been registered for investment with our business have been SMSFs,” Zagga executive director Tom Cranfield told selfmanagedsuper.
After several months of encouraging data, the latest figures have brought a dose of reality: Australia’s economic momentum has slowed. Household spending has softened, building approvals have slipped, and sentiment has weakened — prompting renewed speculation that the RBA may deliver another rate cut before the end of the year.
As the private credit asset class continues to expand, the role of environmental, social, and governance (ESG) considerations has become central to how investment managers assess risk, manage portfolios, and deliver long-term value.
In a recent interview, Zagga Executive Director, Frank Hageali shared how the firm is integrating ESG into its credit risk process and what this means for investors, developers, and communities.
STOCKHEAD & THE AUSTRALIAN
As the dust settles on a turbulent financial year, and Division 296 looms large on the super tax horizon, Aussie investors are waking up to a sober truth: you don’t have to shoot the lights out to build a smart portfolio. Sometimes it’s about holding the torch steady.
The focus has now shifted from big swings for capital growth to something a little more… sensible. Income, consistency, capital preservation.
And that’s why private credit, a once-niche corner of the market, is starting to get more airtime.
Persistent volatility and increased correlation across asset classes have led investors to look beyond conventional tools in search of better defensive strategies to protect income and build long-term resilience. This has accelerated interest in alternative asset classes—particularly real estate private credit.
Unlike traditional bonds, which tend to lose value when rates rise, floating-rate real estate credit adapts with the market, making it a powerful tool in modern defensive strategies to protect income.
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.
GREEN STREET NEWS
Sydney-based private credit firm Zagga has launched a new Singapore fund to tap into the growing Asian capital appetite for private lending on Australia commercial real estate, Green Street News can reveal.
The impact of the budget on macroeconomic conditions is broadly neutral, which was confirmed with the muted reaction in financial markets to the budget. The pre-conditions are in place for the RBA to deliver further interest rate cuts but the timing of the next rate reduction is, at this stage, open.
INVESTOR DAILY
ASIC has warned private market operators as it moves to expose the opaque market to greater transparency.
THE URBAN DEVELOPER
Zagga Director, Frank Hageali says the growth of the non-bank lending sector warrants a framework. He says it could include accreditation, compliance, CPD and education, regular communication of industry related matters to members, membership, committees and potential rating systems.
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 October 2025.
*Average investor return across the active portfolio as at 1 October 2025.
**Target return is after expenses and any applicable management fees for the year ended 30 June 2026. 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.
