Category: Investment Insights
By Raise Private Capital | Raise Insights
Reading time: Approximately 4 minutes
Private credit is playing an increasingly important role in Australia's investment landscape. But as the market develops, one question matters more than ever: what should investors look for when assessing an opportunity?
Private credit allows businesses, property developers and other borrowers to obtain finance from lenders outside the traditional banking system.
For eligible wholesale investors, private credit can provide access to investment opportunities that differ from traditional shares, bonds and bank deposits.
Some private credit investments offer regular income payments. Others provide returns linked to the completion of a project or repayment of a loan.
However, not all private credit investments are structured the same way.
Understanding those differences is an important part of making an informed investment decision.
Why is private credit attracting attention?
Private credit has become an important source of funding for Australian businesses, property projects and other borrowers.
It can offer borrowers an alternative to traditional bank finance, particularly where their funding requirements are more specialised.
For investors, private credit provides access to opportunities involving different borrowers, underlying assets, loan terms and repayment arrangements.
But a growing market also brings greater responsibility for those managing and distributing investments.
In September 2026, the Australian Securities and Investments Commission (ASIC) highlighted the importance of maintaining high standards across the private credit industry.
ASIC Commissioner Simone Constant recognised the contribution private credit can make to Australia's economy while emphasising the need for stronger governance, sound lending practices and greater transparency.
The message reinforces an important point:
The quality of a private credit investment depends on much more than its advertised return.
What should investors look for in a private credit investment?
When reviewing a private credit opportunity, there are several important questions worth asking.
1. What is the investment secured against?
Some private credit investments are supported by security over property or other assets.
For example, a loan may be secured by a registered mortgage over real estate.
However, the existence of security does not guarantee that investors will recover their capital.
The value of the underlying asset, the amount borrowed against it and the rights of other lenders can all affect the outcome if something goes wrong.
Investors should also understand who holds the security and how it could be enforced if the borrower fails to repay.
2. Who is responsible for managing the investment?
The experience and responsibilities of the parties involved are important considerations.
Depending on the investment structure, different organisations may be responsible for lending decisions, managing the underlying assets, holding security and overseeing the investment.
Investors should understand who performs these roles, what experience they have and how potential conflicts of interest are managed.
3. Where does the investment income come from?
An investment offering monthly income may sound straightforward, but understanding how those payments are funded is important.
For example, distributions might come from interest paid by borrowers, income generated by an underlying property or other sources permitted under the investment's governing documents.
The source of distributions can affect their sustainability.
A stated distribution rate should not automatically be interpreted as a guaranteed return.
Income payments may be reduced, delayed or suspended, depending on the investment's performance and terms.
4. How and when will investors be repaid?
Some private credit investments have a contractual maturity date. Others have an expected investment period, with repayment dependent on events such as refinancing, property sales or completion of a development.
An expected repayment date is not necessarily a guaranteed repayment date.
Private credit investments can also have limited liquidity. Investors may be unable to withdraw their money before the investment matures.
Delays in repayment, borrower defaults or falls in asset values can affect both investment income and the return of capital.
Investors should understand that some or all of their invested capital could be lost.
Why investment standards matter
ASIC has identified ten principles intended to support better practices across Australia's private credit market.
These address important areas such as governance, lending standards, valuations, transparency and the management of conflicts of interest.
For investors, greater attention to these areas is a constructive development.
Better information and clearer investment structures can help investors assess opportunities more effectively.
However, regulatory scrutiny does not remove investment risk or mean that every private credit investment meets the same standards.
Each opportunity still needs to be assessed on its own merits.
How Raise Private Capital approaches private investments
At Raise Private Capital, our focus is on providing eligible wholesale investors with access to selected private market investment opportunities.
These may include private credit, property-backed lending and other structured investments.
We believe investors should understand what sits behind an investment before focusing on the headline return.
That means considering the underlying assets, security arrangements, income structure, investment timeframe and the parties responsible for managing the investment.
Our role is to introduce and provide information about selected investment opportunities, helping eligible wholesale investors access the relevant investment documentation and understand the structures being offered.
Raise Private Capital is not necessarily the issuer, trustee or investment manager of the opportunities it presents. Those responsibilities depend on the particular investment.
Looking beyond the headline return
Private credit can play an important role in Australia's broader investment market, providing funding to businesses and projects while offering investors access to different investment structures.
ASIC's increased focus on industry standards reinforces the importance of transparency, governance and sound lending practices.
For investors, the central message is straightforward.
Before considering what an investment might return, understand how it works, what supports it and what could affect repayment.
That approach reflects Raise Private Capital's philosophy:
Structure Over Speculation.
Explore Private Investment Opportunities
Raise Private Capital provides eligible wholesale investors with access to selected private credit, property-backed and structured investment opportunities.
Explore our current investment opportunities to learn more about the structures, investment terms and eligibility requirements.
View Investment Opportunities
The availability of investment opportunities is subject to eligibility requirements and the terms of the relevant investment documents.
Raise Private Capital Pty Ltd (ABN 19 694 558 775) is a Corporate Authorised Representative (CAR No. 1320689) of True Oak Investments Pty Ltd (AFSL 238184).
This article provides general information without taking into account your objectives, financial situation or needs and does not constitute an offer to invest. Investment opportunities are available to wholesale clients only. Raise provides access to investments issued and managed by third parties. Before investing, read the relevant offer document, including its terms and risks. Capital and returns are not guaranteed. All investments carry risk, including the potential loss of capital.