The opportunity in Australian private debt markets
Bank disintermediation leads to opportunities for investors;
The Australian private debt market has traditionally been dominated by the Big 4 banks, supplemented by intermittent foreign banks and a small number of institutional and high net-worth investors.
The resulting power imbalance between borrowers and lenders has ultimately led to credit being provided at far more favourable terms to lenders than those available in the North American and European lending markets.
We believe this market inefficiency has resulted in the opportunity for investors to capture potentially attractive risk-adjusted returns from providing capital-starved businesses with bespoke financing solutions.
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.
IFM Investors has operated in Australia’s private debt market for the past twenty years, and we are well positioned to partner with institutional investors and help them take advantage of the current shifting investment landscape and opportunity set.