Summary

Bank disintermediation leads to opportunities for investors;

The Australian private debt market is highly inefficient, with lending traditionally being dominated by an oligopoly of domestic banks, supplemented by intermittent foreign banks and a small number of institutional and high net-worth investors.

We believe this market inefficiency has resulted in the opportunity for investors to capture potentially attractive risk-adjusted returns, versus comparable developed market private debt, particularly from reliable lenders who are able to meet capital-starved businesses with bespoke financing solutions.

The combination of better lending standards and more attractive pricing leads to the potential for relatively attractive risk-adjusted returns from the Australian private debt market.

We believe the Australian private debt market is highly inefficient and is currently presenting opportunities for institutional investors to capture potentially attractive risk-adjusted returns.

Hiran Wanigasekera, Investment Director

IFM Investors has operated in Australia’s private debt market for the past twenty years, and we believe we are well positioned to partner with institutional investors and help them take advantage of the current shifting investment landscape and opportunity set.