The Fin What LaTrobe and Jon Adgemis reveal about the private credit boom
12 snips
Oct 1, 2025 Join Jonathan Shapiro, a senior reporter at the Australian Financial Review, as he delves into the changing landscape of private credit in Australia. The discussion centers on ASIC's crackdown on La Trobe Financial and its implications for super investors. Shapiro emphasizes the risks involved, including the issues with La Trobe's disclosures and the high percentage of subprime mortgages. The conversation also explores whether non-bank lenders are essential or too risky, highlighting the balance between opportunity and caution in the private credit market.
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Retail Investor Drawn By Higher Yield
- Mandy Coulin parked sale proceeds with La Trobe because the advertised yield beat bank term deposits.
- Her case illustrates how retail investors were drawn into private credit by higher rates.
Private Credit Filled A Post‑GFC Funding Gap
- Private credit supplies loans banks avoid, filling a financing gap created after the GFC and tighter bank rules.
- That gap sparked rapid private credit growth as managers charged higher rates to match demand.
ASIC Targets A Major Retail Lender
- ASIC slapped stop orders on three La Trobe products holding about $12 billion in assets and serving retail investors.
- The action alarmed many because La Trobe manages roughly $20 billion and 120,000 investors.
