The private debt market has experienced significant growth over the last decade, outpacing the broader corporate lending market.
The numbers of private debt deals continues to increase as the banking sector tightens up its lending criteria in the commercial debt sector. On the whole, the private debt market has performed strongly in 2024.
Figures show that the Australian private debt accounted for 125.01 per cent of its nominal GDP in June 2024, compared with a ratio of 124.25 per cent in the previous quarter. This follows years of remarkable growth as private debt/mortgages consistently outpace the broader corporate lending market.
Growing up
The maturation of the private debt market follows the consolidation of a number of existing private debt fund managers and the establishment of new private debt funds as more financial services organisations seek to move into this space.
The market now accounts for nearly 15 per cent of all corporate lending reflecting its growing significance and appeal to investors. Investors receive a return in the form of regular income, derived from the interest (and sometimes fees) on the mortgage loan.
Growth in the sector makes sense. Private debt offers a highly flexible structure, which is well suited to the more uncertain economic environment. It’s particularly good news for Australian companies that have an even greater number of private debt options on hand, giving them more borrowing choice.
The best opportunity within private debt is likely to be in areas where the banks have exited the market, or where market forces dictate the banks take a different direction.
RMBL: a trusted specialist in the market
Mortgage funds are a type of investment product that focus on mortgage-backed securities. Mortgage funds like RMBL’s allow investors to diversify their investment portfolio and gain exposure to the real estate market without having to purchase property directly.
RMBL’s vision is to be Australia’s most trusted and leading niche specialist in mortgage investment services, which we are well on our way to achieving.
Commencing its journey in the 1960s, RMBL is one of Australia’s leading first mortgage funds specialising in select mortgage investment. Our investment solutions provide clients with opportunities to invest in a range of registered first mortgage loans.
RMBL has the appropriate Australian Financial Services License (ASFL) to operate the fund and operates under the Australian Securities and Investments Commission’s (ASICs) framework.
RMBL currently manages a portfolio surpassing $2.25 billion in funds under management – and growing. Backed by over 4,500 investors, we are dedicated to delivering exceptional and highly professional service to our valued clients, many of whom have invested with us for generations.
