Private Credit Tops Wish-List for Australia’s Biggest Investors
- Pension funds seek to increase allocations to asset class
- Floating-rate deals help hedge against inflation, rates
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Australia’s biggest pension funds are hunting for more private credit deals as the investments offer a key hedge against inflationary pressures and higher interest rates.
The typical floating-rate structure of private credit deals is a big draw card as pensions grapple with increasing volatility fueled by monetary policy uncertainty and geopolitical tensions. The global private credit market has now reached $1.6 trillion, according to latest data from Preqin.