Popularity to grow in aftermath of banking royal
commission.
The viability of private funding as an alternative to
traditional lending is a topic we've discussed in 'Worrells
– On The Pulse' before (
click here) and in the aftermath of the banking royal
commission, its popularity will continue to grow.
Earlier this year, this market hit a new all-time high, reaching
$65 billion or 7 percent of the Australian business lending and
bond markets1, making the private funding industry real
competition to the big banks. We've seen evidence of this
empirically with several of our current administrations having a
private equity firm as a creditor.
With the increase in restrictions for big bank funding,
we've heard that private investors are actively seeking ways to
grow their capacity for funding involvement by either developing
their internal capabilities or engaging external credit fund
managers. And investment is not only from local firms. Recently,
Head of Capital
