Media release – Tuesday, 20 May 2025
Zagga, a fully licensed Australian boutique investment manager and non-bank lender, is proud to announce that it has retained a 4-star ‘Superior’ investment grade rating from independent research house, SQM Research, for the fifth consecutive year, re-affirming the calibre of its operations, governance, and investment strategy, in the commercial real estate debt (CRED) sector.
In a year notable for heightened concerns around several aspects of private credit, both from the regulator and some ratings agencies, Zagga’s 5th consecutive 4-star rating is a resounding endorsement of its investment philosophy and execution, rigorous risk management, disciplined approach, strategic focus, and commitment to its stakeholders.
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.
The Report also notes that Zagga continues to operate with a low risk profile, underpinned by a 66.1% weighted average LVR across the portfolio and a conservative credit stance. The average loan size is $13 million, and the team has expanded significantly across its investment and credit teams in both Sydney and offshore offices.
Alan Greenstein, CEO and Co-founder of Zagga, commented: "We are immensely proud to receive a ‘Superior’ rating for the fifth year in a row, especially in this period of increased scrutiny into the Australian private credit sector. It’s a clear reflection of the trust placed in us by our investors, the discipline of our lending practices, the robustness of our processes, and the strength of our people."
Zagga’s product suite includes direct loan investments and pooled options via its flagship Zagga Feeder Fund, Zagga Wealth Fund, the unitized, Zagga CRED Fund and, the recently launched, Singapore-domiciled Zagga Real Estate Credit Fund. For the quarter ended 31 March 2025, the Feeder Fund delivered 9.29% p.a., the Wealth Fund returned 7.22% p.a., and the CRED Fund returned 8.96% p.a., all exceeding their respective benchmarks.
ZAGGA FEEDER FUND
ZAGGA WEALTH FUND
ZAGGA CRED FUND
In a challenging market, Zagga’s ability to maintain its investment grade rating while expanding its product offering and platform capabilities, without compromising the integrity of its portfolio, confirms its position as a standout manager in the Australian real estate private credit landscape.
Please note that research reports are intended for financial advisers and wholesale clients only.
