Home » The state of the debt fund market

The state of the debt fund market

Posted by Deepesh Daya | 01 May 2018 | Banking & Finance

I have met recently with a number of debt fund providers, niche property lenders and market participants.

These are some of my (and other’s) observations about the current state of the market:

  1. There is A LOT of capital (domestic and foreign) coming into the market to establish debt funds and other alternate lending vehicles.
  2. Some participants are familiar with the Australian market (property development in particular) however many are not. For those that aren’t I hope that the fund managers are applying sound credit analysis to the projects/businesses being funded.
  3. Many alternate lenders are not being advised by specialist finance lawyers and are not using adequate documentation – leading to increased risk.
  4. Interest rates among debt funds and alternate lenders are reducing due to increased competition in this sector.
  5. Over the next few years we will likely see (a) further pressure on interest rates in this sector; and (b) consolidation due to failed funds and acquisitions by larger greater capitalised funds.

What are you seeing in the market… ?

If you have any questions, contact Deepesh Daya at dd@nexuslawyers.com.au or call +61 (3) 9098 0437

This publication is © Nexus Law Group and is for general guidance only. Legal advice should be sought before taking action in relation to any specific issues.

Related Articles

Nexus to judge Proptech Awards 2021

17 March 2021 | Nexus News |

Nexus Managing Director Marcus McCarthy announced as a panel judge for the Proptech Awards 2021. “Australia’s residential and commercial property sectors are seeding impressive levels of digital innovation. This new frontier being driven by increasing client demand more automated business platforms that deliver an improved customer experience,” said Marcus.

Nexus Law Group opens new Perth office

31 August 2020 | Banking & Finance |

Nexus has appointed Regulatory and Compliance specialist Colin Miller as Principal of its newly established Perth office.

Clarence Leung

15 June 2018 | Estate Planning |

Clarence is a proficiently trilingual lawyer with 20 years experience working with Australian and international clients in property, civil litigation, migration …

OUR AWARDS