Due credit
As debate continues over whether private credit is a bubble destined to burst, JPMorgan and ASX-listed HMC Capital are betting that the boom is just getting started.
One of the key debates for capital allocators in 2024 that has received less attention than the crypto resurgence or AI rally is whether the boom in private credit is sustainable — or a bubble that is destined to burst.
If moves by one of Wall Street's most storied investment banks and one of Australia's most ambitious investment firms are anything to go by, then it's an area that still has plenty of room to run.
A few hours after JPMorgan was linked in US media reports with a private credit acquisition, ASX-listed alternative asset manager HMC Capital did exactly that. The David Di Pilla led vehicle announced it had acquired Melbourne-based private credit fund manager Payton Capital for $127.5 million.
Payton manages $1.5 billion in private credit assets (loans) — mostly related to property developments — giving HMC a big leg up in its ambitions to build a $5 billion private credit platform.
