Insights – Key takeaways on private credit from the 2026 ARITA NSW Young Professionals Conference

We set out below our key takeaways from the panel discussion on private credit at the 2026 ARITA NSW Young Professionals Conference held in Sydney on 30 April 2026.

  • Current situation:

    • Rapid industry growth has reversed

    • Redemptions at the fund level are emerging as underlying loans experience credit deterioration and defaults

    • Concerns are increasing around reporting transparency and internal valuation of privately held loans, particularly where there is limited trading activity

  • Underwriting standards remain key to avoiding losses:

    • Strong fundamental credit analysis, both bottom-up and top-down.

    • Industry-level assessment and evaluation.

    • Focus on downside protection and stress testing to understand what conditions would need to occur before losses arise

  • Regulation in private credit:

    • Increased scrutiny and monitoring from regulators as banks have pulled bank and risk has migrated to private markets

    • Key focus areas for regulators include:

      • Valuation practices – stale pricing, valuation methodologies, delayed impairment recognition and inconsistent reporting

      • Liquidity management at fund level – adequacy of liquid assets, redemption terms, gating mechanisms and stress testing

      • Dealing with defaults – liability management exercises and restructuring options

About ARITA
Australian Restructuring Insolvency and Turnaround Association (ARITA) is Australia’s leading organisation for restructuring, insolvency and turnaround professionals. ARITA has more than 2,200 members and subscribers including accountants, lawyers and other professionals with an interest in insolvency and restructuring.

ARITA has Young Professionals Committees in NSW, SA/NT, QLD, Vic/Tas and WA. The primary focus of ARITA Young Professionals committees is the development needs of new entrants to the profession and helping younger members progress in their restructuring, insolvency and turnaround careers.

(Photo taken from conference host Pinsent Masons office)

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