In 2025, several key Australian investment trends are shaping the investment landscape. From the rise of sustainable investing to the continuing growth of private credit,

Private credit funds are investment vehicles that provide loans directly to emerging corporates, and SMEs, ranging from unsecured and subordinated lending all the way to senior-secured, asset-backed loans. These loans are often made to small and medium-sized enterprises (SMEs) that need capital but may not have access to traditional bank financing. As an investor, you will have the ability to earn interest income from an underlying loan portfolio, which can be  structured to deliver a steady income stream, often at levels that are compelling relative to traditional fixed-income investments on a risk-adjusted basis.

For Australian investors seeking consistent long-term growth, partnering with a professional fund management company can provide significant advantages. A trusted investment fund manager can bring valuable skills and strategies to optimise investment returns while effectively managing downside risk.

Investing in managed funds is an efficient way for Australians to build wealth over the long term without the need for extensive market knowledge or time spent on detailed asset-level due diligence. Investors get the chance to build a diversified portfolio across various asset classes with diversified risk and potentially stable returns.

Capital access remains a key challenge for small businesses amid rigid bank lending. Here, private credit funds for small businesses provide alternative financing solutions, enabling them to expand, innovate, and thrive.

Private credit funds have emerged as a very attractive asset class in Australia for investors seeking non-traditional investing opportunities. With banks and financial institutions implementing stricter regulations, small and medium-sized businesses struggle to find quick lending solutions. As an alternative, private credit funds offer a great solution to borrowers seeking flexible financing and investors looking for opportunities to diversify their portfolios.

The alternative lending market in Australia is rapidly growing, with a projected CAGR of 17.4% during the forecast period 2024-2028, as reported by a research study. Non-bank lending is on the rise, and SMEs prefer to borrow from non-bank lenders rather than banks.