Borrowed time
Private credit is hot globally, and a growing number of Australian firms want a piece of the action. But they can expect greater scrutiny as ASIC begins digging into the ecosystem.
As the hottest topic of conversation in finance, it was inevitable that the private credit boom would catch ASIC’s eye.
Andrew Cornell revealed this morning that the regulator has already begun questioning firms about their data, the fees they pocket and the analysis they perform.
The regulator is right to have questions. As chair Joe Longo told Capital Brief in an interview, “it’s not so easy to know what’s going on” in private markets generally, let alone in this particularly opaque corner.
What’s clear is that private credit is hot, having ballooned to more than $1.5 trillion globally. Locally, $200 billion has flowed into the sector, with a growing number of Australian firms rolling up their sleeves to get a piece of the action.
