Private Credit Set to Jump on Higher Interest Rates in Australia
- IFM Investors, QIC increasing investments in private credit
- Manager selection key as private credit expands: Mason Stevens
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Some of Australia’s large institutional investors are looking for growth in the nascent local private debt market to take advantage of elevated interest rates and as banks shy away from riskier lending.
IFM Investors Pty., owned by the nation’s top pension funds, has seen its A$12 billion ($8 billion) Australian debt portfolio, which includes private credit, grow by about 20% annually in the last two years. QIC Ltd., meanwhile, is aiming to double its A$1.5 billion private debt business in the next two to three years as both firms seek alternatives to the traditional bond and loan markets.