In our continuing series on global private credit, we next cover the history and outlook for the asset class in Australia.

In a visit to Melbourne and Sydney last week, we met with a number of clients and firms with exposure, appetite, or interest in private debt. What became clear in these conversations was how important context is to understanding how participants think about alternatives.

Australia’s economy is well known for being resilient. Before the Covid pandemic in 2020, it enjoyed one of the longest uninterrupted expansions – almost thirty years – among developed economies. While seeing some slowing in the current environment, that growth has given the continent a measure of stability compared to the volatility across global markets.

Additional support for that economic foundation is provided by a significant wealth of natural resources as well as major investments from China in real estate and infrastructure. Current and future growth also appears to be supported by being the third most popular destination for overseas students – behind the US and UK. And it’s projected to overtake the UK in the next few years.