Leeuwin Capital Partners’ Post

As highlighted in The Australian Financial Review the private credit market has experienced significant growth over the past 5 years. The emergence of numerous new entrants has led many to perceive this sector as 'low risk'. The belief in its low risk is rooted in the absence of experiences during events like the GFC or the 90s recession, where property prices fell by 40%. Success in a thriving market is within reach for many, but the true measure lies in how operators anticipate and prepare for a downturn. When partnering with a private credit operator, it is crucial to ensure they have a solid grasp on how to manage risks, especially in challenging market conditions. #PrivateCredit #MarketGrowth #RiskManagement #HistoryMatters #FinancialIndependence #NonBank

With a lot of hoopla the media, experts and even insiders are rolling out proposals how to bring WLB to the hard-charging world of investment banking. In the Financial Times Craig Coben makes those recommendations seem naive. The structure of the tasks and the extreme expectations of clients make WLB impossible. To that I add this: Could WLB be not much more than a trendy meme which will fade out? Remember quality circles ... https://lnkd.in/gYZ9APT6 #InvestmentBanking #WLB #NoShortageofApplications

BNP Paribas selects Geggus to head Triparty Collateral Services. Andrew Geggus will take on the role in addition to his current position as global head of Agency Securities Lending https://lnkd.in/ejV7WZbt #SecuritiesLending #banking

APRA Ends the Era of Bank Hybrids—Here’s Why It Matters APRA has just called time on bank hybrids, phasing them out by 2032. This bold move follows the collapse of Credit Suisse in 2023, revealing that these securities—often misunderstood by retail investors—pose too much risk for retail investors. What's next? Banks will now turn to Tier 2 bonds and more equity to protect against future crises. While this simplifies the capital structure and shields everyday investors, it could drive up funding costs and reshape investment options. For investors, the message is clear: change is coming. Adapt and stay ahead in this evolving landscape. https://lnkd.in/gxZmJvzd #Finance #Investing #APRA #MarketShift #BankingReform #FinancialPlanning

Without doubt, there has been significant growth in private credit and non-bank lending in recent years.    Per the The Australian Financial Review’s article, growth in private credit has surged 45% over the past 5 years, with approximately 2000 family offices now operating in Australia. I suspect the vast majority of book growth is facilitated through property transactions, whether it be commercial property acquisitions, land banking or even construction finance. This coincides with a period where traditional bank credit has grown at about half the pace of private credit, due to higher capital requirements and increased regulatory oversight.    Similarly, major lenders have cut their CRE exposure from approx. 10% of total assets in 2009, to about 5.5% this year.   With that being said, this presents significant opportunity for well capitalised and profitable entities to negotiate market-leading terms for acquisition & development finance with the majors. Over the last couple of weeks Jonathan Roël & I have seen some of the most aggressive pricing & terms in recent times as the banks compete to gain (or retain) market share.   Roel Capital   #commercialrealestate #privatecredit #landbank #constructionfinance #commercialproperty #financebroking

BNP Paribas selects Geggus to head Triparty Collateral Services. Andrew Geggus will take on the role in addition to his current position as global head of Agency Securities Lending https://lnkd.in/evZyyptT #SecuritiesLending #banking

#NONbank lending’s growth trajectory in Australian #commercialrealestate #debt (ACRED) signals an opportunity for the sector to double over the next five years and continue chipping away at the major bank's market share. #CREdebt #commercialfinance #developmentfinance #developerfinance #propertyfinance

BNP Paribas selects Geggus to head Triparty Collateral Services. Andrew Geggus will take on the role in addition to his current position as global head of Agency Securities Lending https://lnkd.in/e6v4sgm3 #SecuritiesLending #banking

BNP Paribas AM promotes long-serving EM corporates chief to head of EMD. Alaa is based in the firm's London office and reports to CIO fixed income Olivier De Larouzière. Check out our latest article with Alaa Bushehri 👇 https://lnkd.in/ejCz7Qjx #investment #financialservices #banking #assetmanagement

A couple of key points about Private lending not highlighted in this article – many private lenders such as CenturiaBass already disclose detailed information about their underlying portfolios, so we are not a ‘secret’ to our private investors. Information such as portfolio concentration, LVR, regional exposure, security type, loan structure, arrears, returns, non-performance etc are regularly demanded by sophisticated ultra high net worth and institutional investors. Most private lenders are also not ADIs. The requirements for public disclosure for ADIs serve a specific purpose for the underlying retail deposit holder base and the fact that obligations of banks can be ultimately guaranteed by the government (ie the public to whom disclosure is essential) hence the specific public disclosures that follow (not the case with most private lenders). We welcome the opportunity to discuss more about what greater levels of disclosure all lenders should be providing. .