New Australian private credit firm launches first fund

Nero Private, an offshoot of Australian brokerage firm Nero Financial, has launched its first private debt fund.

The new boutique private credit firm said that the new fund will invest in property-backed loans to small- and medium-sized enterprises, specifically tailored for commercial finance purposes.

The firm is targeting annual returns starting from 10 per cent, with a minimum investment of AUS$50,000 (£26,283).

“As borrowers and investors increasingly seek alternatives to conventional banking, private credit is becoming an essential component of the financial landscape,” said Sanja Crnogorac, managing director of Nero Private.

“Nero Private is poised to meet this demand by offering bespoke credit solutions that deliver value to both investors and Australian businesses.”

Australia’s private debt market has been growing in recent months, with a number of new entrants and funds.

Australian fund manager Pengana has launched a private credit fund for retail investors that is listed on the Australian Securities Exchange.

Read more: Pengana launches private credit platform for retail investors

In May, Sydney-based alternative asset manager HMC Capital revealed that it is looking to establish a AUS$5bn private credit asset management platform, to tap into a growth opportunity it says is “too big to ignore”.

And in February, Ares Management raised AUS$2.6bn for a credit fund for Australia and New Zealand, its first leveraged buyout vehicle for the region.