Australia’s private credit market continues its transformation into a core part of the nation’s real-economy financing infrastructure. As banks retreat further from SME and mid-market business lending, and economic conditions demand greater credit discipline, investors are increasingly seeking reliable income and capital stability from managers who pair specialist expertise with deep governance. At Aura Private Credit, that focus has driven our growth from inception — delivering strong investor outcomes while helping productive businesses access the capital they need to grow.
The evolution of private credit in Australia reached a new point of maturity in September with ASIC’s release of Report 814 – Private Credit: An Industry Review and further reports released on the 5th November: Report 823 – Advancing Australia’s evolving capital markets: Discussion paper response and Report 820 – Private credit surveillance: retail and wholesale funds. The regulator’s findings should not be viewed as a threat, but as a clear reminder: with growth comes responsibility.
The Reports highlight seven areas of concern that require improved industry practice:
These issues are not theoretical. They matter because transparency is the bedrock upon which durable capital flows are built.
ASIC’s recommendations focus firmly on raising standards as the sector scales:
The message is unambiguous: private credit is now big enough — and important enough — to demand the same level of governance sophistication long required in traditional credit markets.
The follow-up to the preliminary 814 report is 820.
Key Takeaways
ASIC’s surveillance of 28 private credit funds revealed wide variability in governance, disclosure, and risk management standards. While the regulator recognised the sector’s contribution to SME finance and diversification, it expressed concern that rapid growth and retail participation outpace regulatory maturity. ASIC emphasised that “private credit can be good for investors, borrowers and the economy — but only if done well.”
For leading managers like Aura Private Credit, the report reinforces the importance of transparency and governance as differentiators. Funds that can demonstrate disciplined credit processes, well-documented valuation methodologies, and clear investor communication stand to gain trust — and potentially capital — as ASIC raises expectations across the market.
ASIC’s forthcoming regulatory focus areas include:
Aura Private Credit welcomes this regulatory focus. Many of the standards ASIC is encouraging are already embedded in our DNA:
We built our business to meet institutional expectations — well before those expectations were codified. Investors deserve nothing less.
Today, we hold a leadership position in Australian private credit, not because we are the largest, but because we remain unwavering in our purpose: to protect and grow investor capital while strengthening the businesses that are the lifeblood of Australia’s economic future.
Our commitment to transparency, governance, and data-driven lending remains firm. Our outlook remains positive as the market continues to shift toward specialist lenders who deeply understand borrower needs and credit risk dynamics.
Thank you for your continued support and confidence in Aura Private Credit. We look forward to continuing to deliver defensive income outcomes — the right way — with discipline, purpose and integrity.