EY-Parthenon 2026 Australian Private Debt Market Overview

Australia’s financial landscape is shifting as private credit moves from a niche product to a mainstream funding source. EY-Parthenon’s 2026 Australian Private Debt Market Overview reviews the events of the 2025 and provides insights into what we expect to see this year in the private debt market. 

• The expansion of private credit presents significant opportunities for borrowers looking to finance their next phase of growth, owing to private credit’s ability to respond to borrower demand through flexible underwriting for companies of all sizes and credit ratings.
• As the private market continues to expand and assert itself as a structurally important part of the financing landscape in Australia, lenders with strong discipline, bespoke underwriting capabilities, sector expertise, and diversified portfolios are well-placed to capture the upside of a growing market while managing the risks associated with borrower distress.
• However, there is no such thing as a free lunch. Indeed, the same features that have enabled private credit’s growth also expose the sector to heightened risks, particularly during periods of economic uncertainty.