Moody's Ratings stated in its latest report that despite increasing regulatory scrutiny in Australia, the private credit market is expected to continue expanding. Data shows that private credit growth in the country has already outpaced bank lending, with non-bank lenders (including private credit) accounting for 8.7% of total credit as of August, a significant increase from 5.4% nine years ago.

The report noted that as businesses increasingly seek alternatives to traditional bank credit and capital market financing, demand for private credit will continue to rise. Beyond commercial real estate financing needs, Moody's anticipates a rapid increase in funding demand for data center construction.

"Private credit is playing an increasingly critical role in greenhouse gas reduction projects, such as renewable energy development, with these ESG-aligned projects becoming a key growth market," the report emphasized. Analysts suggest that continued capital inflows from institutional investors like insurers and pension funds will further drive innovation in this sector.