Private credit roundup: Australian home builder Bathla's dues

Moody's

18/09/2026 16:55

Sept 18 (Reuters) - Australian home builder Bathla Group was back in the headlines this week on news it owed about A$3 billion ($2.1 billion) to more than 40 lenders when it entered administration, according to documents filed with the corporate regulator. 
Bathla, which operates in Sydney's western suburbs and is one of the country's biggest affordable housing developers, went into administration last month. Australia's financial system regulator had earlier said banks and pension funds had limited exposure to the debt-laden home builder. The market fallout too has been minimal, merely pointing to the extent to which private credit has replaced the risk-averse banking industry in Australia's property sector.
The filings highlight Bathla's heavy reliance on private credit to fund land purchases and developments, underscoring risks in Australia's A$200 billion private credit sector. Its lenders included Jarrah Capital, 360 Capital, Balmain Opportunity Trust, Ray White Capital and Leda Finance.
Australian companies have also attracted a wave of takeover interest from private equity firms and overseas investors so far in 2026, although only a limited number of those approaches have advanced beyond the preliminary stages.
In other news, private credit investors are increasing commitments to emerging market strategies, particularly in Asia, even as economic and geopolitical uncertainty slows dealmaking.
Fundraising for private credit funds focused on developing economies reached $8.7 billion in the first half of 2026, more than double the $3.6 billion raised a year earlier, according to the Global Private Capital Association (GPCA).
Deal activity moved in the opposite direction. GPCA recorded 215 transactions worth $6.7 billion in the first half, down from $11.8 billion in the same period last year. 
Emerging markets remain a small part of private credit. The global market is worth about $3.5 trillion, according to the Alternative Investment Management Association, with less than 10% invested in emerging markets.
     Asia-Pacific private credit assets are projected to climb to $92 billion in 2027 from $59 billion in 2024, with Australia, India, Japan and Singapore among the main markets, an AIMA report showed.
Singapore-based Granite Asia recently raised more than its $500 million target for its pan-Asian Libra Hybrid strategy. Since its launch in 2025, the strategy has completed eight transactions and two exits. The firm is now focused on deploying the capital.
Managing partner Ming Eng said Granite was targeting mid-sized companies tied to digitalisation, technology, regional expansion and shifting supply chains. Asian private credit markets remain less crowded than those in the United States and Europe, she said.
New structures are also emerging to channel capital across borders.
     Tether and Fasanara Capital launched an evergreen private credit fund last week, backed by $400 million in sponsor capital and targeting up to $3 billion from third-party institutional investors.
     The fund will use Tether's dollar-pegged USDT stablecoin to support cross-border lending and invest in short-duration, asset-backed credit through fintech platforms operating in more than 60 countries.
($1 = 1.4065 Australian dollars)

 (Compiled by Vidya Ranganathan and Patturaja  Murugaboopathy
Editing by Tomasz Janowski)
 ((patturaja.muruga@thomsonreuters.com;))