Private Credit Crackdown Will Shield Investors, Qualitas Says

Australia’s increased regulatory scrutiny of the fast-growing A$200-billion ($130 billion) private credit sector will help protect retail and less sophisticated investors, says real estate private credit lender Qualitas Ltd.’s Andrew Schwartz.

“There’s a lot of practices that go on in private credit, particularly with the more unsophisticated investors who I don’t think fundamentally understand the real depth of the risks that they’re getting involved in,” said Schwartz, Qualitas’ group managing director, at the Citi Australia & New Zealand Investment Conference in Sydney on Wednesday.

He warned that without regulatory intervention, the competitive nature of the market — combined with ...