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PRIVATE PRIVATE CREDIT CREDIT GUIDE GUIDE

Your go-to resource for understanding Your go-to resource for understanding the private credit landscape, showcasing the private credit landscape, showcasing expert insights, unique fund strategies, expert insights, unique fund strategies, andand exclusive investment opportunities. exclusive investment opportunities. Nuveen

Challenger

Zagga

Pindara Partners

Foreword

PRIVATE CREDIT GUIDE

Welcome to our special report on two of Australia’s most compelling private credit opportunities, designed for wholesale investors seeking income, capital preservation and portfolio diversiﬁcation. In the past year, more and more wholesale investors have been moved to consider an asset class traditionally reserved for institutional investors as they seek out the attractive yield and regular income these assets can provide.

Private Credit Guide

Addressing the differences in working with wholesale investors, managers in the space have worked hard to demonstrate their transparency, liquidity and data collection to ensure wholesale investors are well informed of any potential risks. Our esteemed sponsors for this report – Challenger Investment Management, Nuveen, Zagga and Pindara Partners – have vast experience of the years of investing in this space and in this report, we highlight their unique approaches to the asset class. Across the chapters, you’ll gain a better understanding of how these funds deliver stable income while maintaining disciplined investment processes.

Foreword

Private Credit Guide

Challenger IM Credit Income Fund As one of the few Australian private credit managers with experience in the space pre-GFC, Challenger seeks to provide ﬂexible solutions across corporate, asset-backed and commercial real estate markets.

Zagga CRED fund Zagga shares its tips for ﬁnancial advisers and wealth managers when it comes to selecting a private credit fund manager, providing valuable information for those who are new to the sector.

Its ﬂoating rate Credit Income Fund aims to provide a consistent income with lower volatility than traditional ﬁxed income. Unlike some credit funds, it can invest across both public and private credit markets to seek the most attractive opportunities depending on market environment and cycle.

It also provides information on its real estate debt fund Zagga CRED (ZCF) which offers exposure to a diversified portfolio of creditworthy commercial loan transactions, secured by Australian real estate. ZCF predominantly in senior debt, diversified across a mix of geographic locations, sectors, and borrower profiles.

It also aims to reduce market risk by maintaining a relatively short spread duration and limiting credit risk, targeting the Bloomberg AusBond Bank Bill Index +3 per cent per annum after fees. Nuveen Churchill Private Credit Income Fund Described by Nuveen as a ‘gateway’ to the US middle market, the Nuveen Churchill Private Credit Income Fund allows wholesale investors access to risk-adjusted returns via the US middle market private capital platform run by its affiliate Churchill Asset Management. The decades of experience from Churchill means Nuveen investors are working with trusted, experienced managers who have the ability to be highly selective, negotiate favourable terms and secure stronger structural protections. Structured as an Australian unit trust, it is targeting income with upside potential, has monthly subscriptions and seeks to provide enhanced diversification and inflation protection.

Tactical income with Pindara Partners Pindara Partners believes the next phase of private credit will be deﬁned by specialist managers solving increasingly complex capital structure challenges through tactical credit. Tactical credit, sitting between senior debt and developer equity, is helping sponsors recycle capital, unlock projects and bridge funding gaps. Most non-bank lenders focus on the senior debt tranche, leaving the subordinated segment relatively underserved. This creates an opportunity for operators like Pindara that can underwrite the underlying real estate and structure risk appropriately. Happy reading! Investor Daily

Inside

Private Credit Guide

CONTENTS 13

Zagga: What advisers and wealth managers need to know for fund selection

Nuveen Churchill Private Credit Income Fund: Providing a gateway to the U.S middle market

Challenger IM Credit Income Fund: A multi-sector credit strategy investing across high-quality opportunities

Pindara Partners: Private credit evolves to core pillar of real estate

ASIC’s principles: The regulator’s 10 principles for best practice in private credit

Nuveen

NUVEEN CHURCHILL PRIVATE CREDIT INCOME FUND Nuveen Churchill Private Credit Income Fund (“Fund”) is an Australian registered unit trust designed to provide Australian wholesale investors access to riskadjusted returns, primarily through current income, via Churchill Asset Management’s U.S. middle market private capital platform.* *Applicable to Nuveen Churchill Private Capital Income Fund (“Underlying Fund”). The Underlying Fund is a non-diversiﬁed, closed-end management investment company that has elected to be registered as a business development company (‘BDC’) under the United States Investment Company Act of 1940. The objective is a target only and may not be achieved.

Private Credit Guide - For Wholesale Investor Only

me in

Nuveen

Private Credit Guide - For Wholesale Investor Only

Why consider U.S. middle market private credit?

2. Access to the depth and maturity of the U.S. middle market.

1. Highly selective, diversified private capital portfolios targeting durable income and attractive-risk adjusted returns.

The US middle market is enormous — and most of the opportunity sits in a part of it that remains genuinely underserved.

Adiversified diversifiedsource sourceofof attractive A attractive risk-adjusted risk-adjustedreturns returns 1Q 1Q2016 2016to to 1Q 1Q2026 2026

Meaningful opportunity resides in the Meaningful core middleopportunity market resides in the core middle market of U.S. companies by revenue >$100 million Number

o and . public

Annualized return (%)

7,527

Private credit

REVENUE RANGE ($M)  Large corporates  Upper middle market

$500 - $1,000

Core middle market

$100 - $499



$1,000+

2244

6.0 High yield 4.0

These dynamics matters for investors. Trusted, experienced managers active in this segment are potentially able to be highly selective, negotiate more favourable terms, and secure stronger structural protections — advantages that are harder to come by in more crowded corners of the market.

Number of U.S. companies by revenue >$100 million

10.0

8.0

3,989

1261

Core middle market

Leveraged loans

• Meaningful U.S. revenue and job growth contribution

1819

Corporates

617

Upper middle market

4022

• Broad industry and subsector diversity

• Cyclical resistance potential from service-oriented businesses in highly fragmented industries

The indices listed do not represent benchmarks for the funds but allow for comparison of a fund’s performance to an index and are provided for 1553 • Predominantly domestic footprint Treasuries illustrative purposes only. There can be no assurance that historical trends helps mitigate global macro shock exposure will continue during the life of any fund. An investor cannot invest directly in 0.0 Public Private 0.0 2.0 4.0 6.0 8.0 10.0 an index. The indices presented represent investments that have material Standard deviation (%) differences from the fund including those related to vehicle structure, investment objectives and restrictions, risks, fluctuation of principal, safety 1 The asset classes presented are based on the following indices: “Private credit” Source: S&P Capital IQ, 31 Mar 2026. Revenue ranges: Core middle guarantees or insurance, fees and expenses, liquidity and tax treatment. Performance data shown represents past performance and does not predict or guarantee future results. Opinions and views expressed reflect the current opinions and views of Churchill as of the date of this material only. Nothin g contained herein is - Cliffwater Direct Lending Index. “Leveraged loans” - S&P/LSTA market $100-$499 million; Upper middle market $500-$1,000 million; intendedLeveraged as a prediction of howLoan any financial markets will perform in the future and nothing contained herein should be relied upon as a promise or representation as to past or future performance of a fund or any other entity, transaction, or investment. Index performance does not reflect fees and expenses which may include nuveen | 2 1 Source: S&P Capital IQ, 31 Mar 2026. 2 Source: State Street U.S. Private Capital Index, as of 31 Mar 2026. Refer to the “Additional information – definitions & endnotes” for additional important disclosures on the indices presented. Index. “High yield” - Bloomberg High Yield Index. “Corporates” – Bloomberg US Large corporates $1,000+ million. management fees, access fund expenses, and administrative fees. Corporate Bond Index. “Investment grade bonds”- Bloomberg US Aggregate Bond Index. “Treasuries” - Bloomberg US Treasury Index. Index data is presented 2 U.S. Private sector GDP data was obtained as of 28 May 2026 from the for the period since earliest common inception date from 1Q 2016 to 1Q 2026. U.S. Bureau of Economic Analysis (Gross domestic product - Government consumption expenditures and gross investment). Middle market GDP was then derived by applying a one-third multiplier, consistent with the National The U.S. middle market is the world’s third-largest global economy based on global GDP — bigger than Germany or Center for the Middle Market’s defi nition as of December 31, 2025. Global Japan2— It potentially offers a scale and depth of opportunity well beyond what is available domestically, giving nuveen | 1 GDP is based on the IMF, World Economic Outlook (April 2026) nominal GDP Australian wholesale investors an opportunity to diversify beyond the local private credit market. projections for 2026. 2.0

Investment grade bonds

Nuveen

Private Credit Guide - For Wholesale Investor Only

Important Information

Channel Investment Management Limited (ACN 163 234 240; AFSL 439007) (“CIML”) is the responsible entity and issuer of units in the Nuveen Churchill Private Credit Income Fund (ARSN 678 164 335).

Invest with a cycle-tested private capital manager Churchill Asset Management, an affiliate of Nuveen, is one of the most active and established managers in U.S. middle market private capital, built on decades of disciplined underwriting and longstanding sponsor relationships.3 Nuveen Churchill Private Credit Income Fund Fund Objective: The Fund, via its investment in the Underlying Fund, seeks to provide investors with risk-adjusted returns primarily through current income, by investing in a diversified portfolio of private debt and equity investments in U.S. middle market companies owned by leading private equity firms.8

Key features: • Target income with upside potential: Dynamic allocation via the Underlying Fund to debt capital investment opportunities4 with potential upside • Compelling structure: Monthly subscriptions, distributions (where available), NAV and redemptions (subject to applicable limitations)5 As of 31 Fund, Aug 2026 • Access & diversification: Via the Underlying seeks to provide access to enhanced diversification6, inflation protection7, and lower volatility than traditional assets

• A leading private capital manager: Cycle-tested, proven track record over 20 years

Underlying Fund, as of 31st August 2026

Key portfolio statistics

$3.3B

INVESTMENT PORTFOLIO AT FAIR VALUE

$81M WEIGHTED AVERAGE EBITDA

41.6%

WEIGHTED AVERAGE LOAN-TO-VALUE

371

NUMBER OF PORTFOLIO COMPANIES

0.3% AVERAGE POSITION SIZE

This additional information provided on the Underlying Fund is for investors considering an investment in the Fund only and should not be considered a recommendation or solicitation or an offer by Nuveen or its afﬁliates to potential investors to directly purchase shares in the Underlying Fund. A subscription for units in the Fund is not, and does not purport to be, a direct subscription for shares in the Underlying Fund. All currency for the Underlying Fund is listed in USD$. All investments involve risk. The key risks of investing in the Fund includes market risk, withdrawal risk, Underlying Fund risk, liquidity risk and private credit investment risk. For further information on the risks of investing in the Fund, please refer to section 7 of the Product Disclosure Statement for further information on risks.

Source: KBRA DLD 2025 U.S. Direct Lending League Table Rankings. An investment in the Fund involves the Fund subscribing for shares of the Underlying Fund (a collective investment), and not directly investing in a given underlying asset. An investment in the Fund involves a high degree of risk that can result in substantial losses. 5 Read the Product Disclosure Statement for further information on applicable redemption terms. 6 Diversiﬁcation is neither a reliable indicator nor a guarantee of future returns or capital preservation. 7 Downside inﬂation protection is not a reliable indicator of protection against future losses. 8 The target is an objective only and may not be achieved. 3

Neither (i) Nuveen Australia Limited (ACN 168 690 444; AFSL 460770) (“NAL”), nor (ii) Churchill PCIF Advisor LLC, Churchill Asset Management LLC or Nuveen Asset Management, LLC is the responsible entity or the issuer of units in the Fund. NAL is regulated by the Australian Securities and Investments Commission and holds an Australian Financial Services Licence in respect of financial services provided in Australia to wholesale clients as defined in section 761G of the Corporations Act 2001 (Cth). The information contained in this material is general information only and is intended solely for licensed financial advisers or authorised representatives of licensed financial advisers and wholesale clients. It is not intended to constitute financial product advice or an offer, invitation, solicitation or recommendation to invest, sell or hold a security or an investment strategy. The information is not intended to be relied upon as a forecast, research, investment advice or a recommendation. The information is not provided in fiduciary capacity and does not take into account the specific objectives, financial situation, needs or circumstances of any particular investor, or suggest any specific course of action. Investors should consider, with a financial adviser, whether the information is appropriate in light of their specific circumstances. Financial professionals should independently evaluate the risks associated with products or services and exercise independent judgment with respect to their clients. Before making any investment decisions you should consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the Fund available from https://www.nuveen.com/au-pcap. Neither CIML or NAL guarantees the performance of the Fund or the return of an investor’s capital. Nuveen, LLC provides investment solutions through its investment specialists. 00084282

For more information, including the Product Disclosure Statement and Target Market Determination, visit nuveen.com/au-pcap.

Seek private credit resilience with U.S. middle-market depth. Create highly diversified portfolios with a breadth of U.S. middle-market opportunities that seek strong, risk adjusted return potential. • 50+ years as an active private capital investor 1 • US$99B in committed middle market capital 2 • Owned by TIAA, the #4 largest global private debt investor 3

Invest like the future is watching. nuveen.com/au-pcap

Nuveen’s private capital investing team (inclusive of TIAA’s private credit and private equity investing teams) started investing in leveraged buyouts (LBOs) in 1969. Reflects total capital committed to Churchill and Arcmont as of 30 Jun 2026. Estimated and unaudited. 3 Rankings published in the Private Debt Investor Magazine’s Global Investor 75, December 2025/January 2026. 5908242 1 2

Challenger

CHALLENGER IM CREDIT INCOME FUND The Challenger IM Credit Income Fund is a ﬂoating-rate, multi-sector credit strategy investing across high-quality, predominantly investment-grade opportunities. By allocating across public and private credit markets, the Fund seeks to capture relative value and generate additional income over comparable public-market investments, while providing diversiﬁcation and limited exposure to changes in interest rates.

Private Credit Guide

Challenger

The Credit Income Fund aims to provide clients with consistent income accompanied by lower levels of volatility than traditional fixed income strategies. As a leader across multiple private lending markets since 2005, the Challenger IM team is able to unlock opportunities which have historically been largely limited to banks and a small number of large and specialised institutions. Key features of the fund Low volatility and regular income The fund aims to achieve superior absolute returns over the medium to long term while offering capital stability and a steady income stream. Superior diversification The fund invests across both public and private credit markets, providing the opportunity to allocate to the most attractive sectors over time. Focus on risk The fund aims to reduce market risk by maintaining a relatively short spread duration and limiting credit risk, targeting an average investment grade rating. Experienced team The team’s breadth of experience allows them to exploit market inefficiencies across all sectors in the global credit market.

Private Credit Guide

Strong governance Investors benefit from a robust governance framework including an independent credit risk management team within the Challenger Group. Who is the fund suitable for? The fund is best suited to investors who:

• Require an investment with consistent levels of income.

• Understand and are willing to accept a higher level of liquidity risk in order to generate higher returns than daily liquid fixed income products. • Have an investment horizon greater than three years. Fund facts Investment return objective: The fund aims to achieve superior absolute returns over the medium to long term while offering capital stability and a steady income stream. Performance target: Bloomberg AusBond Bank Bill Index + 3% after fees Liquidity: Monthly with 10% fund level gate Distribution frequency: Quarterly Recommended investment horizon: 3 years + Fees (Class A): 0.60% p.a.

Minimum initial investment (Class A): AU$10,000

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Key mitigants to risk

• Low-interest rate risk with maximum one-year • duration.

• All assets hedged to Australian dollars minimise currency risk.

• Covenant to maintain average investment grade credit rating limits the risk of the manager taking on excessive levels of credit risk. • A 10 per cent cap on monthly redemptions reduces the potential for large withdrawals to negatively impact remaining unitholders. For a full description of the risks related to investing in the fund please refer to the product disclosure statement (PDS). ﬁdante.com/au/CHAL-PDS-CIF.pdf

Challenger

Private Credit Guide

The Challenger IM Credit Income Fund is rated Recommended by both Zenith and Lonsec Research.

How to invest

Why Challenger IM? Our investment platform was established in 2005 and as one of the only investment managers in Australian private credit that has pre-Global Financial Crisis experience, we aim to be the first call for borrowers requiring scalable, flexible and tailored lending across corporate, asset-backed and commercial real estate markets. Direct engagement, combined with scale of capital and experienced underwriters, allows us to provide more flexible solutions to borrowers and to charge an appropriate excess return for such solutions. Challenger Investment Management employs rigorous and comprehensive practices regarding risk and governance in private credit investing. We take a robust fair value approach to valuations, striving to ensure all our clients are treated fairly and equitably at all times. Upfront fees are paid to our investors, minimising conflicts of interest and the independent credit risk team, responsible for risk assessments and ratings, is separate from the investment team, ensuring downside risk is appropriately considered and mitigated in every deal we do.

You can invest in the Challenger IM Credit Income Fund online through Boardroom or by contacting a Fidante BDM: bdm@ﬁdante.com.au 1300 721 637

Disclaimer: The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (Challenger IM Credit Income Fund – Class A (HOW8013AU) assigned June 2026 and Challenger IM Multi-Sector Private Lending Fund (HOW6713AU) assigned June 2026; Challenger IM LiFTS 1 Notes (CIMHA) assigned June 2026) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines. The rating issued 05/2026 for Challenger IM Credit Income Fund – Class A and Challenger IM Multi-Sector Private Lending Fund is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only and have been prepared without taking account of investors’ objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec Research assumes no obligation to update. Lonsec Research uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2026 Lonsec. All rights reserved.

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To learn more about how Challenger can help, click here

Zagga

SELECTING THE RIGHT PRIVATE CREDIT FUND FOR YOUR NEEDS Zagga has shared its tips for ﬁnancial advisers and wealth managers when it comes to fund selection as wholesale investors navigate the sector for the ﬁrst time and understand its risks and rewards.

Private Credit Guide

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Zagga

Private Credit Guide

Australia’s private credit market has grown to about $235 billion in assets under management, delivering a compound annual growth rate of 21 per cent over the past decade compared with around 5 per cent for bank debt and bonds.

It is now on track to overtake the local bond market by assets under management by 2029, reflecting its evolution from a niche allocation into a core source of portfolio diversification and commercial financing.

While private credit can bring income characteristics, relative stability and low correlation to public markets, it can also be illiquid and require a longer term horizon.

Figure 1.2: Growth in the size of the Australian private credit market, 2015 to 2024 (EY Parthenon) 250 213

A$ billion

200

175

150

188

131

100

105

64 50 0

2015

2026

Source: EY Australian Debt Market Update

2027

2028

2019

2020

But with ASIC placing a regulatory eye on the sector and performance differing significantly between funds, it is important for investors to pay close attention in their due diligence and fund selection.

2021

2022

2023

2024

The features of these types of funds such as their minimum investment periods and notice periods may be well-known by institutional investors who have accessed the asset class for years but are likely to be fresh news for wholesale investors who are accessing the asset class for the first time. The rapid growth of private credit has created a diverse marketplace encompassing a broad range of strategies, asset types and investment approaches. While these investments are often grouped under a single asset class, the underlying risk profiles, portfolio structures and manager

014

capabilities can differ significantly and can have a meaningful impact on investor outcomes. As a result, thorough due diligence remains essential to understand how a fund generates returns, manages risk, and whether its strategy aligns with an investor’s objectives and risk tolerance.

Factors to consider includes: • Returns • Loan-to-value ratio • Pricing • Diversification • Depth and discipline of underwriting • How these returns are generated • What risks were taken to achieve returns • How risks are managed in changing conditions

Zagga

Private Credit Guide

“No two private credit fund managers are the same, and periods of volatility are when those differences surface. Two managers can hold loans that look identical on a term sheet – same sector, similar loan-to-value ratio, comparable pricing – and produce completely different outcomes. What actually determines the result is the depth and discipline of the underwriting behind the headline return, not the return itself,” said Zagga. “Investors should scrutinise not only a manager’s historic returns and origination capability, but also its governance structures, credit discipline, and risk-management frameworks that underpin those outcomes.” Another criteria is how a fund performs in different market cycles, which can be hard to establish if a fund is newly-launched or only has a short track record. A rapid rate-hiking cycle, as being demonstrated currently by the RBA’s four hikes in 2026 so far – can reset borrowing costs while a spike

015

in inflation can drive construction costs higher. “In stable markets, most managers can present a conservative position. The more meaningful test is whether that discipline is reflected in the structure of the loan book: conservative loan-to-value ratios, selective deployment, rigorous underwriting, and active risk management. “A track record is only meaningful when it has been tested across different market conditions and periods of stress.” “What separates managers is not what they say about their approach, but whether that approach can withstand the tests across cycles and protect investor capital precisely when it matters most. That’s the substance behind the three lessons of the past nine years: capital preservation has to be the goal by default; discipline is only proven under pressure; and a track record only means something once it has been truly tested.”

The information contained in this article is provided for general educational and informational purposes only. It is not intended to constitute financial, investment, legal, tax or other professional advice, nor should it be relied upon as a recommendation, offer or solicitation to invest in any financial product or strategy. The views expressed are current as at the date of publication and may change without notice. Any references to private credit, market conditions, investment opportunities or asset classes are provided for illustrative and educational purposes only. Past performance is not a reliable indicator of future performance. All investments involve risk, including the potential loss of capital.

Zagga

Private Credit Guide

Zagga

Private Credit Guide

These ratings provide investors with additional assurance that ZILT – and by extension, the Fund – is managed to a consistently high standard, with strong emphasis on capital preservation and quality execution.

Manager track record Zagga is an Australian investment manager established in 2016, specialising in real estate private credit within the commercial real estate debt sector.

Performance and returns The Fund targets RBA cash rate + 5 per cent p.a. (8.60 per cent at 12 August 2025), with periodic distributions. Returns are supported by floating- rate loan structures. 12-month trailing returns graph

Since inception, the firm has: Originated and managed over AU$2.5 billion in loans. The real estate debt Zagga CRED Grown totaloffers funds an under management fund (ZCF) alternative to to over AU$1 billion at June 2025). shares and (as traditional fixed income and property investments through Actively and successfully navigated a number of investment exposure to a diversified enforcement and workout situations, such that portfolio of creditworthy commercial investors have received payment loan transactions, secured by of their full principal and interest across all discharged loans. Australian real estate. Investor suitability ZCF invests predominantly in senior debt, diversiﬁ ed across a mix of The Fund is intended for wholesale geographic locations, sectors, asset investors who: types and borrower proﬁles. Seek stable, income-generating assets with defensive characteristics.a strategic The fund demonstrates focus highpreservation growth markets, robust Value on capital supported by project exit quality developers, low secured, realwith estate-backed loans. default rates and resilient performance. Prefer exposure to the Australian market with its Instrong FY26,legal ZCF and returned 8.72 frameworks. per cent per regulatory annum versus its benchmark of RBA Want access to private credit returns with rate + 4 per cent. shorter investment durations compared with other private markets strategies.

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Why zig when you can Zagga? For more information: Email: info@zagga.com.au Website: www.zagga.com.au Phone: 1300 192 442

Pindara Partners

PRIVATE CREDIT EVOLVES TO CORE PILLAR OF REAL ESTATE Private credit has moved from being a ‘niche’ offering to a core pillar of the real estate ecosystem, according to Pindara Partners, supported by a more regulated and specialist market.

Private Credit Guide

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Pindara Partners

Private Credit Guide

The Brisbane-based firm, which seeks to generate alpha from commercial real estate via debt and equity finance, first got into private credit back in 2015-16 and has watched the market evolve over the years.

“When we started in private credit in 2015-16, nobody wanted to admit they were dealing with a non-bank lender. Now, every serious developer in Australia has relationships with banks and with multiple non-banks – it’s just business as usual.

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“Private credit has clearly shifted from being an ‘alternative’ to becoming a core part of Australia’s real estate capital ecosystem,” said Pindara Partners managing partner Daniel Erez. “The next phase is about a more regulated, more specialised market where the growth isn’t unfettered and risks – particularly to retail investors – are better managed.” Erez noted that since the Global Financial Crisis (GFC), regulators have prioritised financial system stability which has constrained what banks can and cannot do – and helped drive the growth of private credit. This has included a push by ASIC here in Australia for higher standards, greater disclosure and tighter operating models in a bid to make private credit more suitable and accessible for wholesale investors. “Private credit is playing a major role by offering bespoke, bilaterally negotiated solutions that are speciﬁc to a borrower’s needs. The risk sits with the owners of that capital rather than on bank balance sheets,” he said.

“From where we sit, private credit is critical not just for real estate but also for parts of the economy like private equity and corporates.” The result is a sector entering a new phase of maturity: deeper, more specialised and increasingly critical to funding Australia’s development pipeline, while also facing much closer scrutiny from regulators and investors. “Private credit has become materially more mainstream than it was even five years ago. The size of the Australian market has grown substantially across asset classes, and that’s attracted the attention of both the media and the regulator – and rightly so.

Pindara Partners

Private Credit Guide

“We’re now entering a phase of maturity where the regulator wants to see more standardisation in managers’ operating models. We think that’s a really positive development.

“The challenge now is making sure the market you’re in has strong underlying demand and that you can deliver product at a price the market will absorb. In some markets projects are stagnating; in others, like SouthEast Queensland, sales volumes have been surprisingly resilient,” Erez said.

Pindara recently provided junior debt to Sydney boutique developer Stable Group for its $210 million Waruda Residences project. Erez said Australia’s development pipeline is increasingly constrained by equity availability rather than debt availability, particularly for established mid-market developers. “There’s arguably never been a better time to be a borrower. There’s more choice in the debt market, and with more competition comes better terms – on both pricing and covenants.” The key constraint, he added, now sits on developers’ balance sheets. “Debt is relatively plentiful; the challenge is stretching their equity across as many projects as possible, particularly in residential build-to-sell where the structural tailwinds remain favourable.” Meanwhile, developers continue to face market challenges. Initially, the major constraint was on the cost side, with inﬂation in construction materials and labour. According to Erez, that challenge has now shifted in some markets towards the revenue side, driven by interest rates, geopolitical uncertainty and softer buyer conﬁdence.

“It’s never been easy to be a developer, but Australia still has a structural undersupply of housing. For those who can execute well, the opportunity remains.” Tactical credit The next phase of private credit will be defined by specialist managers solving increasingly complex capital structure challenges through tactical credit. Tactical credit, sitting between senior debt and developer equity, is helping sponsors recycle capital, unlock projects and bridge funding gaps.

020

“Clearly, the biggest opportunities are in tactical credit. It’s a segment with far less competition, a better risk-reward set-up, and we’re able to be a price maker rather than a price taker – to the beneﬁt of our investors.” Junior debt remains one of the most structurally undersupplied segments of the market despite rapid private credit growth. Erez said the underwriting approach to a well-structured junior debt investment is almost identical to a senior loan – and in some respects more robust – because investors are higher in the capital structure and exposed to more moving parts. He added there is a misconception that junior debt is inherently riskier than senior debt, when structure, security, underwriting discipline and equity buffers are often the more important determinants of risk.

“What we call tactical credit is the part of the capital structure below senior lending – subordinated debt, junior debt, mezzanine debt and preferred equity or other structured finance,” Erez said.

“You still benefit from registered mortgages over real property, guarantees and a tight set of covenants, geared to provide sufficient buffer against a fall in value. In many respects it looks like senior lending, even though it sits second in the repayment waterfall.”

Most non-bank lenders focus on the senior debt tranche, leaving the subordinated segment relatively underserved. This creates an opportunity for operators like Pindara that can underwrite the underlying real estate and structure risk appropriately.

Investment selection With more private credit funds available in the market, Erez said this means investors have had to become more sophisticated with their fund assessment and due diligence.

Pindara Partners

Private Credit Guide

While they may have had a broad exposure in the past, the progress in fund development means they are now more likely to seek exposure to a specialist strategy which has downside protection.

“We’re not running an evergreen fund, so we’re not under pressure to have capital deployed at all times. That allows us to be very selective, and in tactical credit that’s even more important.”

Erez believes investors should assess managers beyond headline yield and consider other factors such as track record and governance.

In his opinion, the key is understanding what investors are being paid to accept a certain level of risk.

“Simply targeting higher yields is not a riskmanagement strategy,” Erez said.

“The market is becoming more mature and sophisticated in trying to understand that trade-off.”

“Investors should focus on who is actually making the investment decisions – their experience, their track record, how they decide what proceeds and what doesn’t, and what governance sits around that.”

Looking ahead, Pindara sees a robust and healthy fundamental market to serve. Higher base rates are making returns on credit attractive for investors, while borrowers increasingly require bespoke solutions that banks are unable to provide, the firm said.

Fund selection is not only the duty of the investor either as Pindara is equally selective on which investments it backs. In 2025, the firm assessed approximately $1.45 billion of opportunities and only around 3 per cent of these progressed to financial close. “That tells you Pindara is extremely picky – potentially to our detriment at times.

“The outlook is positive, but it comes with higher standards, more disclosure and more reporting – which we see as a real positive for everyone,” he said. “In three to five years, the market will be larger, deeper and more sophisticated. Standards will rise as a result of regulation, and you’ll see more specialisation by asset class and strategy.”

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For more information: Email: invest@pindara.com.au Website: www.pindara.com.au

Fixed, high yielding real estate backed credit 13-18% p.a net returns over 12-24 months

Direct co-investment opportunities featuring registered mortgage security, priority repayment over equity and the certainty of a premium, fixed rate return. Start co-investing today via invest@pindara.com.au

13 -18% Net return range

100%

Capital return rate

Capital losses

$3b+

Transaction experience

Track record of the Pindara investment team (Newground, ICG-Newground, Pindara Partners) to 30 September 2026; IRR gross of fees. 13–18% is the indicative net return, not a forecast or target. Past performance is not a reliable indicator of future performance. Wholesale clients only; general information, not an offer.

See things differently. Find out more: pindara.com.au

ASIC’S 10 Principles for Private Credit

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ASIC’S 10 PRINCIPLES FOR PRIVATE CREDIT

ASIC’s principles for private credit follow the regulator’s review of the private credit sector. Funds are urged to use the guiding principles to assess their current practices and lift them if necessary. This step will enhance trust and integrity in the private credit fund sector. All participants in the private capital funds sector should apply these principles when reviewing their practices, and strengthen them where needed, with appropriate tailoring based on the nature of the fund’s underlying assets.

Source: ASIC, November 2025

ASIC’S 10 Principles for Private Credit

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Principles

Why it matters

Stewards of other people’s money

REs and trustees act as stewards of investor capital, ensuring that their decisions are fair and in investors’ best interests.

Safeguards assets, promotes fairness and maintains trust in the system.

Organisational capability

Human, financial and technological resources are adequate. REs and trustees operate efficiently, honestly and fairly.

Supports operational resilience, investor protection and regulatory compliance.

Transparency

Investors have access to timely, transparent information on investment strategy, exposures, valuations, risks and fees.

Supports comparability and informed decision-making by Investors.

Design and distribution obligations

Design and distribution practices are fair, transparent and appropriately targeted for investors.

Ensures investors receive clear, accurate information to make informed decisions, and mitigates against mis-selling of unsuitable products

Fees and costs

Fees and costs are fair and transparent, giving investors and borrowers a clear view of total costs.

Enables informed decision making and promotes trust.

Conflicts of interest

Conflicts of interest are identified, disclosed and effectively managed or avoided.

Promotes trust and fair treatment of investors, borrowers and other parties.

Governance

Structures, processes and people promote sound decision-making, compliance and accountability.

Drives responsible decisions, supports ethical conduct, and fosters a riskaware and compliant culture.

Valuations

Valuations are fair, timely and transparent, with robust governance.

Determines transaction, entry, and exit prices, and can influence management and performance fees.

Liquidity

Liquidity risk is effectively disclosed and managed, avoiding structural mismatches, with fair redemption terms aligned to portfolio liquidity.

Minimises disruption during stress and ensures fair treatment of exiting and remaining investors.

Credit risk

Credit risk is effectively managed across loan origination, portfolio construction, monitoring, impairment, default and repayment.

Ensures disciplined lending. Aims to preserve investor capital, supports longterm portfolio performance, and enables effective impairment and default management Source: ASIC, November 2025

Partners

WITH THANKS TO OUR PARTNERS

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VATE EDIT IDE

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