Asset-backed and unlisted securities can be challenging to monitor and value. And that’s precisely why investors need to understand the distinctions between different private credit strategies.  

Real estate debt, with its tangible security and transparent valuation process, offers a compelling alternative to these more complex approaches. Critics, however, have argued that the private credit sector needs tighter regulation. However, this overlooks the substantial oversight already in place. 

The framework for responsible lending exists – we've been operating within it successfully for years.

As a private credit manager, Ark Capital holds an Australian Financial Services License (“AFSL”) issued and administered by ASIC, operating Managed Investment Schemes in accordance with the Corporations Act and regulated by ASIC, and complies with AML/CTF regulations administered by AUSTRAC. We undergo a statutorily required and independent annual AFSL audit, and our funds undergo independent annual financial audits. In addition, we maintain an independent risk and compliance committee.

Our strategic focus? Residential and industrial sectors.

This isn’t by accident. Land and land subdivision projects in particular offer shorter investment terms and lower construction risk compared to large-scale development projects. When combined with our extensive experience in development and construction, this helps us manage risk effectively while delivering consistent returns for our investors.

Our message is simple: not all private credit is created equal.

By focusing on real estate debt, maintaining high transparency standards, and sticking to our core expertise, we’re demonstrating how private credit can deliver value to both borrowers and investors while still maintaining robust risk management standards.

Article written by Peri Macdonald, Chief Executive Officer – View LinkedIn

The commentary in this article in no way constitutes a solicitation of business or product advice.  It is expressed solely as the opinion of the author, and as general information for the reader. It is not information to be relied upon in making investment decisions.