Alan Greenstein

The rapid growth of Australia’s private credit sector has outpaced investor understanding of the asset class, creating a gap between rising participation and a deeper appreciation of the risks, opportunities, and structural differences that distinguish high-quality strategies from the rest of the market, according to real estate private credit investment manager, Zagga.

Now valued at ~$235 billion in assets under management (AUM)^[1] , the Australian private credit market has achieved a compound annual growth rate (CAGR) of 21 percent over the last decade,^[2] compared with ~5 percent for bank debt and bonds^[3] . It is on track to have more AUM than the local bond market by 2029, moving from a niche asset class to a core portfolio stabiliser and significant, rising source of commercial financing.

Zagga CEO and Co-Founder, Alan Greenstein, whose firm has deployed more than $3 billion in funding to Australian real estate, said this growth is set to accelerate but private credit is not a homogenous asset class and more must be done to ensure every investor understands both the risks and opportunity.

“Private credit can offer investors significant upside with stable income, attractive risk adjusted returns, and uncorrelated portfolio diversification. As macro headwinds intensify and fiscal policy tightens, this appeal has seen more investors – from institutions to individuals – drawn to the asset class,” Mr Greenstein said.

“Yet, not every investor has the experience or expertise to understand the complexities of private credit and the vast and varied opportunities within it. For example, US corporate credit carries a significantly different risk profile to Australian real estate private credit. We have seen global investors caught unaware by this, with the current rhetoric around gating and liquidity highlighting the need for more investor education.”

Once the domain of institutional investors, private credit is now seeing rising demand from family offices and sophisticated individuals. UBS data highlights almost 80 percent of family offices intend to maintain or grow their private credit allocations over the next five years^[4] , while high-networth investors and self-managed-super funds (SMSFs) account for over 50 percent of Zagga’s AUM.

“Diversification and downside protection are becoming harder to come by in this environment and private credit, especially backed by quality, real assets, can be an attractive addition to portfolios.

“To realise these benefits, investors must do their due diligence – understand how their capital is invested, where it is being deployed, who is managing it (experience and track record), and what risks are associated. As an industry, we have a responsibility to act with transparency, ensuring our investors can access and understand this detail.”

Investor education in focus for milestone anniversary

Celebrating its nine-year anniversary this month, Zagga has grown from its initial 30 investors, with $40 million AUM and $60 million deployed in its first year, to ~$3 billion invested across more than 350 transactions in the Australian real estate sector. Its investor base now exceeds 1,000 entities, globally, and it is on track to close the financial year with ~$1 billion in new originations.

To mark the milestone occasion, and address the education gap, Zagga has launched an educational whitepaper series spotlighting real estate private credit and homing in on the topics that are keeping investors up at night.

Greenstein said celebrating the milestone anniversary with a focus on investors is true to the origins of the Zagga business and its commitment to being “investor-first”.

“Being an investor-first business is more than a tagline to us, it informs every decision we make and ensures capital preservation remains at the heart of our strategy. It’s why our founding investors and executives remain with us today as our business has grown nearly ten-fold,” Mr Greenstein said.

“We know returns are just part of the story. As the opportunity evolves, investors rely on us as trusted experts to help them understand and access quality Australian real estate private credit opportunities in a way that best suits their risk appetite. This whitepaper series aims to complement our existing investor resources and affirm our unwavering commitment to transparency, trust, and partnership – values our business was founded upon.”

The first whitepaper of the series focuses on Opportunity through uncertainty deep diving into the changing investment landscape, risks and opportunities in global private credit, why Australia continues to attract attention, and the importance of governance and risk management for those exploring private credit.

“Capital continues to need a home and the global search for stability is on,” Mr Greenstein said. “Conditions in US corporate credit have tightened, while the UK and Europe have seen capital struggling to be deployed. Australian real estate private credit has largely differentiated itself due to its backing by quality, underlying real assets, a resilient, demand-driven economy, well-regulated lending market, and the strong tailwinds powering our local property sector.

“In this environment, Australian real estate private credit remains an attractive proposition. Yet, as every facet of financial markets feel the pressure, the focus must be on governance, prudent risk management, and specialised, cycle-tested investment expertise.”

Commercial real estate lending now accounts for ~18% of the Australian private credit market, with $92 billion invested^[5], and growing. This demand has seen Zagga enjoy 50 percent year-onyear growth, targeting $5 billion in AUM by 2030.

“We are at the forefront of one of the fastest growing segments of Australian private credit. Demand is only going to intensify – from both domestic and offshore investors – and we have a responsibility to remain transparent and help investors make informed decisions.

“Market cycles have become shorter and more intense. The fund managers that thrive are those that stop viewing borrowers and investors as mere participants and, instead, treat them as longterm partners through the inevitable peaks and troughs of the global economy.

“The ability to deliver across market cycles is now the baseline for trust. Experienced, specialist managers need to do more – we need to act as true partners, securing trust and transparency by ensuring investor education keeps pace with capital allocations. As growth of Australian private credit accelerates, so too must our best practice commitments to investors.”

Read the whitepaper.

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Notes:
[1] EY-Parthenon Annual Australian Private Debt Market Overview March 2026
[2] Ibid.
[3] Alvarez & Marsal, Australian Private Debt Market Review, November 2025
[4] UBS Global Family Office Report, 20255 Alvarez & Marsal, Australian Private Debt Market Review, November 2025
[5] Alvarez & Marsal, Australian Private Debt Market Review, November 2025 

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Daniel Jones

Specialist real estate private credit investment manager, Zagga, has secured an additional $25 million for its senior secured corporate note as investors strengthen defences and prioritise income amidst persistent volatility.

Arranged by fixed income specialist, FIIG Securities, the tap issuance for the four-year note settled on 30 March and targets a yield of 7.85% per annum. It closely follows an initial issuance in December 2025, which was oversubscribed by 30 per cent.

The Zagga corporate note has now secured more than $100 million in investor capital as continuing market volatility and mounting global uncertainty drive demand for defensive portfolio allocations and stable, risk-adjusted income.

“Increased volatility in financial markets, and the onset of a rate-hiking environment, have investors increasingly looking to defensive asset allocations and, in particular, floating-rate note exposures with solid yields from well-known brands,” FIIG Head of Debt Capital Markets and Syndication, Daniel Jones, said.

“This has driven rising demand for fixed income investments, which traditionally have offered investors a safe haven from more volatile asset classes.

“The Zagga corporate note provides the additional benefit of uncorrelated, multi-layer diversification, with returns driven from private credit investments in Australian commercial real estate opportunities. Senior credit, underpinned by quality, well-supported physical assets, is in high demand and can provide investor portfolios with an additional layer of protection.”

FIIG has been partnering with Zagga since 2021 and has secured more than $130 million in funding across two corporate notes.

“This latest tap-issuance was in response to strong investor appetite for disciplined commercial real estate credit investment,” Mr Jones said.

“FIIG has been partnering with Zagga for many years, with our investors attracted by Zagga’s well-credentialed management, deep sector expertise, and the transparency of the underlying portfolio.”

Rising rates in an inflationary environment are further fuelling demand, with the floating rate nature of the investment ensuring investors maintain their margin above the RBA cash rate.

Commenting on the latest tap issue, Zagga CEO and Co-Founder, Alan Greenstein, said the capital will be allocated to mid-market residential development projects along Australia’s eastern seaboard in line with Zagga’s investment strategy.

“Current market dynamics have created the perfect storm for experienced, specialist real estate private credit managers as investors seek to protect and diversify portfolios, without sacrificing returns,” Mr Greenstein said.

“Quality, well-managed Australian real estate private credit investments can deliver this. The support of this note, and the recent tap issue, suggests investors are attracted to steady, transparent, non-correlated returns underpinned by well secured real estate assets.”

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Alan Greenstein

Specialist real estate private credit investment manager, Zagga, has secured $65 million through an oversubscribed corporate note arranged by fixed income specialist, FIIG Securities.

The four-year, senior secured note closed 30 per cent over its target figure of $50 million, offering investors access to a quality fixed income investment with a current yield of ~7.85% per annum (Bank Bill Swap Rate (BBSW) + 4.20%).

Commenting on the raise, FIIG Head of DebtCapital Markets and Syndication, Daniel Jones, said investors were attracted by the bond’s structural features, including Zagga’s well-credentialed management, real asset security, and transparency of the underlying portfolio.

“The oversubscription of this issuance evidences the strong investor appetite for disciplined commercial real estate credit investment,” Mr Jones said. “Given current volatility, there is strong investor demand for Australian fixed income, with the market experiencing increased activity and rapid growth. The overlay of real estate adds further attractive benefits, including physical security over quality, well-supported assets.

“As the sole lead arranger, FIIG originated and structured the deal, ensuring the offer met investor demand, while providing Zagga with flexible long-term capital that complements its other funding sources.”

Zagga and FIIG first partnered on a four-year, $30 million Senior Secured Note issue in November 2021, with a further $13 million tap-issue in March 2022. The $43 million issuance matured in November. Due to the success of the previous issuance, and anticipated interest from existing note holders and new investors, the decision was made to extend the partnership and expand the latest raise.

The funds will be managed by Zagga and allocated to mid-market residential development projects along Australia’s eastern seaboard, predominantly focused on Sydney, which is the deepest and most liquid market.

Commenting on the market opportunity, Zagga CEO and Co-Founder, Alan Greenstein, said the structural imbalances in the Australian property market present a compelling investment case.

Australian real estate has enjoyed 20 years of sustained growth. A nationwide housing shortage, pullback from traditional lenders due to capital and regulatory constraints, and a booming population further strengthen the sector’s momentum,” Mr Greenstein said.

“We have a strong project pipeline, which these funds will be allocated towards, such as the construction of boutique apartments in Mosman, a luxury residential development in Dee Why, and early-stage funding for developments in Marrickville and Manly.

“Each of these developments benefit from the significant tailwinds in Sydney’s property market, which is experiencing strong demand for housing but a significant lack of supply.

“In our view, there has never been a better time for experienced, specialist real estate private credit managers to access investment-grade transactions with strong sponsors and counterparties.”

Zagga surpasses $1 billion milestone

Australia’s private credit market is now valued at $224 billion, growing nine percent year-on-year. Commercial real estate lending makes up $92 billion of the market^[1] .

As demand for real estate private credit opportunities increases, Zagga has surpassed the significant milestone of $1 billion in funds under management (FUM).

With 50 percent year-on-year growth, the specialist manager sees significant opportunities ahead, targeting $5 billion in FUM by 2030.

“The real estate private credit market has changed significantly over the eight years since we started Zagga with 32 foundational investors whom we are proud to still have with us today,” Mr Greenstein said.

“As real estate private credit in Australia gains global recognition as an established and growing asset class, we are witnessing the asset class move from an ‘alternative’ to a core part of a welldiversified portfolio.”

Reflecting this evolution, Zagga now invests on behalf of over one thousand investment entities, comprising domestic and offshore sophisticated individuals, family offices, and institutional investors.

“Looking ahead, we expect to originate larger loan sizes as the dynamics of the real estate market change, and we are increasing funds under management to support these opportunities. But our strategy will not waiver from our conservative, transparent, investor-first approach – values upon which Zagga was founded and remain extremely relevant today.”

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Notes:
[1] Alvarez & Marsal, Australian Private Debt Market Review, November 2025

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Roushana Sjahsam

Specialist private credit investment manager, Zagga, has appointed Roushana Sjahsam as Senior Board Adviser, ASEAN, as it accelerates its regional expansion with the launch of a new real estate private credit fund tailored to meet growing demand among Southeast Asian investors.

Ms Sjahsam brings three decades of experience across debt and capital markets in Asia, working most recently as Managing Director at Cantor Fitzgerald Capital Markets in Hong Kong. Previously, she worked at both Citibank and leading Asia Pacific credit provider, ADM Capital, for over a decade.

In the newly created role, Ms Sjahsam is charged with raising awareness of Zagga and its specialised real estate private credit offer amongst institutional investors, family offices, and wealth managers across Southeast Asia.

“The opportunity is ripe for ASEAN investors wanting exposure to the Australian property market,” Ms Sjahsam said. “Private credit only makes this more compelling due to its defensive characteristics and stable, reliable income amongst heightened global volatility.

“Asia-based investors are increasingly recognising this, attracted by Australia’s strong economic fundamentals, growth tailwinds in the property sector, and the uncorrelated diversification benefits private credit can offer.

“I am excited to be at the helm as Zagga strengthens its ASEAN proposition. Our strategy is proven, with our largest institutional investors already based in Singapore and Japan. This next stage of growth will be driven by investor education alongside our proven specialist capabilities and access to quality investment opportunities.”

ASEAN capital currently accounts for ~15 percent of Zagga’s funds under management, with a goal to double this over the next two years. In response to this bold growth ambition, Zagga has strengthened its regional headcount by 50 percent in the last 12-months.

“Zagga’s strong and growing presence in Asia is a key differentiator – we are on the ground in both markets and able to help offshore investors better understand and access Australian private credit opportunities,” Ms Sjahsam said.

“Investors in Southeast Asia have traditionally invested in US and European private credit markets, but Australia is quickly capturing attention. The expanding opportunities and maturing market offer an attractive risk return premium that resonates with local investors.”

Zagga unveils new fund dedicated to ASEAN investors

The appointment of Ms Sjahsam comes as Zagga launches a new Singapore Variable Capital Company (VCC) – the Zagga Real Estate Credit Fund (ZRECF).

Established to support the growing appetite from ASEAN investors for Australian real estate private credit, the Fund will invest directly in quality prime commercial real estate across Australia’s East Coast – Australia’s deepest and most liquid markets.

Investors can also choose their preferred currency – AUD, SGD, HKD, USD – offering a more flexible and localised proposition.

Zagga CEO, Alan Greenstein, said the Fund and appointment of Ms Sjahsam further evidence the firm’s commitment to supporting investors in Southeast Asia and continuing to grow its investor base.

“We see strong demand from investors across the region, but many still haven’t discovered the Zagga experience,” Mr Greenstein said. “We are expanding our footprint and making it easier to invest with us. To do this successfully we recognise the importance of having a senior team on the ground to help investors every step of the way. “We are thrilled to have someone of Roushana’s experience and network join our Singaporebased Board Adviser, Alok Kochhar, in growing our regional team and believe our specialised proposition, track record, and localised investment solution provide all the key ingredients to make Zagga a compelling choice for investors.”

Since originating its first loan in 2017, Zagga has invested over $2.5 billion across more than 300 transactions in the Australian commercial real estate sector, spanning residential, commercial, and industrial property assets. Its global investor base includes HNWIs, family offices, and institutional funders, from Japan, Singapore, China, Mauritius, Switzerland, USA, South Africa, and Australia.

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