SYDNEY, 5 November 2025 Global professional services firm Alvarez & Marsal (A&M) today released fresh insights into Australia’s private debt market. Its latest Australian Private Debt Market Review 2025 reveals a robust growth trajectory as assets under management reach A$224 billion - a strong 9% increase from 2024. This milestone reflects a consistent shift in how capital is being deployed in the Australian lending market and, signals a new chapter of innovation and flexibility.

The invested assets segment of private capital is now in the spotlight. Institutional investors including pension funds, insurers, and family offices are continuing to increase their allocations to private debt. They are attracted by its return for risk profile, the breadth of the market opportunity, and the improving regulatory oversight of the market.

Key findings from A&M’s 2025 Australian Private Debt Market Review include:

• A$224 billion in assets under management, comprising A$132 billion in corporate lending and A$92 billion in commercial real estate lending.
• Evolving capital raising channels, with insurance companies and pension funds attracted by the alignment of investment-grade private debt with their long-term liabilities, and the re-emergence of the listed investment trust market.
• Direct lending and specialist finance mandates gaining momentum, offering speed, flexibility, and more tailored capital solutions. Market consolidation is intensifying, with top-tier domestic multi-asset managers now holding 27% market share, supporting the heightened focus on stronger governance and transparency.
• Market consolidation is intensifying, with top-tier domestic multi-asset managers now holding 27% market share, supporting the heightened focus on stronger governance and transparency.

Australia’s private debt market is not just growing it’s evolving with purpose,” said Sebastian Paphitis, Managing Director, Corporate Finance, A&M Australia. “At A$224 billion and climbing, private capital is reshaping the future of finance and helping fund key drivers of economic activity.

As competition increases and traditional funding channels recalibrate, private debt has emerged as a core segment of the lending market, better supporting the financing of Australian business, addressing a wider range of funding needs and offering more tailored capital solutions.

John Nestel, A&M Head of Corporate Finance and Debt Restructuring, SE Asia and Australia added: “This is a fundamental market shift in the landscape, with private capital now delivering the speed, scale, and flexibility of solutions that today’s market demands.

About Alvarez & Marsal (A&M) Founded in 1983, Alvarez & Marsal is a leading global professional services firm known for its operational heritage and results-driven approach. A&M provides advisory, performance improvement, and turnaround management services to corporates, investors, and government bodies. With deep expertise across Australia, the US, and Europe, A&M partners with clients to unlock value and drive strategic transformation.

For more information, visit: www.alvarezandmarsal.com.au