Story perspectives

Australia Dominates Private Credit in Global Real Estate

10/8/2025

Summary

Australia's Private Credit

Australia is a key market for global real estate private credit, with development and commercial opportunities.
Private credit in Australia accounts for 16% of total commercial real estate lending, reflecting bank conservatism.
Securities and Exchange Commission (SEC) says private credit is not systemic risk. In Asia Pacific, fundraising reached 11.2 billion from 2020 to 2024, led by Australia with 40%.

Summary

MDBs Boost Recoveries

Public-entity defaults in Latin America and the Caribbean declined; recoveries are high.
Multilateral Development Banks (MDBs) lend directly to 167 sovereign Emerging Market and Developing Economies (EMDEs), with only 39 defaults in 41 years.
MDB loans to over 10,000 private entities average 3.54% default and 72.9% recovery.
Sub-Saharan Africa had the highest recovery rate despite higher defaults.

History

Historical Context

The 2008 financial crisis, triggered by a collapse in subprime mortgage markets, led to significant changes in global lending practices. In Australia, private credit now accounts for 16% of commercial real estate lending, reflecting banks' cautious post-crisis strategies. Meanwhile, Latin America's Multilateral Development Banks have maintained a low default rate of 39 in 41 years, highlighting a shift towards private financing in emerging markets.

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Australia's Private Credit

Australia is a key market for global real estate private credit, with development and commercial opportunities.
Private credit in Australia accounts for 16% of total commercial real estate lending, reflecting bank conservatism.
Securities and Exchange Commission (SEC) says private credit is not systemic risk. In Asia Pacific, fundraising reached 11.2 billion from 2020 to 2024, led by Australia with 40%.

1 / 3