Banks tighten financing for Australian private credit funds
Global banks including Goldman Sachs and UBS are becoming more selective about financing Australian private credit funds, according to a report by Bloomberg citing people familiar with the matter.
Major global banks like Goldman Sachs and UBS are tightening their financing for Australian private credit funds, according to a Bloomberg report citing anonymous sources. The lenders are showing preference for bigger, well-established managers while scaling back on smaller firms with substantial property exposure. Existing investments are generally being upheld.
The change includes stricter lending conditions and, in some cases, banks refusing to approve certain deals. This move is taking place amid a property downturn, rising borrowing costs, and heightened regulatory oversight. It is estimated that about half of Australia's roughly AUD200bn private debt market is tied to real estate. Notably, Sydney-based developer Bathla Group filed for insolvency in August, owing AUD3.4bn, primarily to private debt managers.
Additionally, Judo Bank has also become more selective about financing private credit funds, disclosing around AUD445m of warehouse lending across nine facilities in August, along with a robust pipeline of potential opportunities.
Written by urgent.news from Private Equity Wire's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
