Private credit continues to boom. With institutional investors such as superannuation funds having increased their exposure to private credit, it is now being pitched hard to retail investors, particularly those who are classed as sophisticated or wholesale, a category which includes some self-managed super funds and wealthy individuals.

From less than $50 billion in funds under management in 2015, Australian private credit, also referred to as private debt, has posted a compound annual growth rate of 23 per cent since, to reach almost $200 billion in 2023.