The $US83 billion ($123 billion) private equity giant Warburg Pincus and local financial services group MA Financial are placing a $1 billion bet on two of the most talked about asset classes in the country: residential property and private credit.

In a deal 12 months in the making, Warburg Pincus will back a new Australian real estate credit vehicle that will be managed by MA Financial (formerly Moelis Australia), which will lend to developers across high-density, medium-density and subdivision projects.