Private Credit Is Growing in Australia

Private credit has become a significant source of financing to the Australian market in recent years, supporting property investment, development, refinancing and business funding. Its growth reflects demand for lending structures that can be assessed and tailored to individual transactions.

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Banks remain central to the lending market, while some borrowers seek a facility structured around the timing and circumstances of a particular transaction. Private credit can meet those needs when the property security, borrower and repayment plan support the proposed terms.

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Property-backed private credit gives eligible wholesale investors access to asset-backed opportunities with required returns set out for each transaction. The underlying security is an important part of the assessment, alongside borrower capacity, leverage and the repayment strategy for each deal.

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IM Capital focuses on short to medium duration, asset-backed lending opportunities across Australia. Each transaction is reviewed on its individual profile, with particular attention given to security quality, leverage appeal, borrower strength, and the repayment strategy.

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Our contributory investment model allows eligible investors to consider individual opportunities and select investment opportunities aligned with their portfolio return objectives. Our objective is to provide a transparent and professionally managed investment process, supported by disciplined credit analysis and ongoing market and loan monitoring.

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Traditionally IM Capital lending criteria on second mortgage facilities often excludes single-asset backed loans in Victoria and certain states and half-complete development sites, where repayment may depend too heavily on one security or on further construction funding. We continue to monitor these risks throughout the life cycle of each loan.

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Property markets move through different economic and interest-rate conditions. IM Capital accounts for those changes by reviewing current security values and marketability, setting appropriate LVR levels, assessing borrower capacity and testing realistic exit strategies. Ongoing monitoring helps identify changes that could affect repayment during the loan term.

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Our property analyst team reviews comparable transactions, the security’s condition and its likely marketability, providing best outcome for each credit assessment deal.

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Eligible wholesale investors, including those investing through an appropriate superannuation structure, can consider opportunities in line with their objectives. IM Capital’s contributory approach gives investors choice of the transaction they invest in.