Private Credit – Filling the $41 Trillion Global Funding Vacuum
Why "Bank Retrenchment" is creating a massive opportunity for brokers who adapt their strategy.
Private credit has evolved from a niche alternative into a core allocation, reshaping a $41 trillion addressable global credit market. In Australia, the non-ADI mortgage volume jumped by 25.3% in 2025, compared to just 3.9% for major banks. This article explores how to turn this market shift into a competitive advantage.
In This Article
- Step 1:The Great Divergence
- Step 2:Data Analysis: Private vs. Bank
- Step 3:Managing the DTI Cliff
- Step 4:The "Dual-Track" Strategy
Step 1: The Great Divergence
The shift is driven by "Bank Retrenchment." Traditional lenders are pulling back from riskier or more complex loans due to tighter capital standards and APRA’s DTI caps. This has created a vacuum that private credit is rapidly filling.
Why It Matters
Private credit is not a last resort. It is a legitimate tool for multi-property investors and SMEs who need speed, flexibility, and bespoke loan structures that banks cannot offer.
Step 2: Data Analysis
The numbers tell the story of a two-speed market. While major banks stagnate under regulatory weight, non-bank lenders are capturing market share through agility.
Fig 1. Non-ADI lenders outperformed Major Banks by over 6x in volume growth.
| Lending Category | 2025 Growth | 2026 Outlook | Key Advantage |
|---|---|---|---|
| Non-ADI (Non-Bank) | 25.3% | Accelerating | No APRA DTI caps; Speed |
| Major Banks (Big 4) | 3.9% | Stagnating | Lowest interest rates |
| Asset-Backed Finance | Record Inflows | Cornerstone | Structural resilience |
| Private Secondaries | $226 Billion | Record Liquidity | Exit options |
Step 3: Managing the DTI Cliff
The relevance of this pillar for 2026 is "Choice and Resilience." Brokers must understand that a resilient financial system is one where different institutions cater to different risk profiles.
Critical Insight: Private credit lenders have the freedom to evaluate borrowers on a case-by-case basis and create flexible covenants that banks cannot offer.
Step 4: The "Dual-Track" Strategy
Brokers should run "Dual-Track" financing processes—having parallel conversations with private lenders and traditional banks to ensure certainty of execution for their clients.