CBA and Macquarie cheer on private credit surge in property finance
Private debt, often funded by family offices, is rapidly growing and crucial in supporting property development in a tough market. Even big banks are supportive.
Private credit is becoming increasingly crucial in financing commercial developments, particularly in property, as banks pull back from more complex lending and family offices look for yield and diversification.
One such bank growing its exposure to private credit markets is Macquarie Group. Morgan Stanley argues that Macquarie is "the overall standout beneficiary of the private markets flywheel reaccelerating”.
Mike Vacy-Lyle, head of business banking for Australia’s largest lender Commonwealth Bank, said the sector was “complementary” to what banks are doing. He noted that some deals would not be viable without the mezzanine and riskier debt provided by private credit funds.
“We know which ones we like to be involved with, some are more reliable and just generally better partners," he told Capital Brief.
