Capital Allocators · Thursday, July 16, 2026
Frank Danieli of MA Financial Group explains that Australia's private credit market differs significantly from the US, with a greater emphasis on asset-backed facilities and direct asset lending rather than solely sponsor-backed direct lending. This divergence is attributed to regulatory changes and the evolution of the Australian banking sector.
“In our region, private credit looks different to globally. Globally, this term private credit is almost synonymous with sponsor backed direct lending. Our book is 60% asset backed facilities, 20% direct asset lending, and then 20% in the direct corporate lending, which includes sponsor back direct lending.”
“It's not saying there's a certain type of leverage loan that were better done in credit funds, it's saying there's a whole bunch of things that banks used to do, they either wanted to do minimally or can't do them efficiently from a capital perspective, and there's a different way.”