FEAR & GREED | Business News Q+A: "Not done consistently well:" Inside ASIC's private credit concerns
Nov 26, 2025
Simone Constant, ASIC Commissioner known for her oversight in corporate and financial markets, dives deep into the booming $200 billion private credit sector. She reveals that while private credit can be a valuable asset, it often lacks consistency and poses significant risks. Transparency, she argues, isn't enough to address issues like poor valuations and allocation conflicts. Simone also highlights superannuation funds' vital role in navigating these challenges, urging them to focus on enhancing retirement services as private credit evolves.
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What Private Credit Actually Is
- Private credit is non-bank, direct lending that sits outside prudential regulation and is dominated by property lending in Australia.
- The asset class can be beneficial but is "not done consistently well," requiring faster market maturity.
Rapid Growth Raises Maturity Concerns
- Australia's private credit market has grown ~500% in a decade and is less mature than the US, with a heavy property focus.
- That immaturity plus scale of super funds increases the urgency to lift standards and consistency rapidly.
Insist On Effective Disclosure
- Demand effective, informed disclosure that reflects common industry definitions rather than token transparency.
- Push for consistent default definitions, clear accountability, and meaningful valuation and conflict disclosures.