The Evolution of Private Credit: Opportunity, Risk and the Road Ahead

In recent years, private credit has stepped confidently into the spotlight as a serious alternative to traditional bank lending in Australia. With the major banks continuing to pull back from some segments of the market, particularly in areas like construction and development finance. Private lenders have helped to fill this important gap.

At Millbrook Group, we’ve witnessed this shift first-hand. We currently manage approximately $406 million in private credit, secured by Australian real estate. And while we welcome the sector’s growth, we also believe it’s critical to approach it with a disciplined and experienced mindset.

Growing Confidence, Persistent Risk

As highlighted in a recent article by Mortgage Professional Australia, private lending is no longer considered fringe or niche. Institutional investors, family offices, and even super funds are now actively allocating capital to this space.

However, growth doesn’t come without risk. At the height of market enthusiasm, it’s easy to overlook some of the red flags. George Lyall, Millbrook’s Head of Origination, put it plainly in the article:

“Some new entrants to the space may not have the track record or experience required to properly assess and manage risk. Large upfront fees or a lack of construction experience should be immediate red flags for brokers and borrowers alike.”

Read the full article

The Role of Experience and Diligence

Private credit requires more than capital—it demands rigorous due diligence, sector knowledge, and a commitment to transparent, ethical lending practices.

That’s where Millbrook has carved out its strength. With a seasoned team, robust origination practices, and deep expertise in property-backed lending, we work closely with brokers to deliver outcomes that are sound, timely and suitable for their clients.

Our process includes:

• Thorough vetting of borrowers and projects

• In-house credit assessment with real-world property insight

• Transparent terms, with no surprise fees or hidden conditions

• Active management and reporting through the life of the loan

Supporting Brokers, Building Trust

We understand that brokers are on the front line—balancing client needs, managing lender expectations, and staying on top of an evolving regulatory environment. At Millbrook, we see our broker partners as long-term collaborators, not just transaction points.

By providing clarity, consistency and a relationship-led approach, we aim to make private credit not just an option, but a reliable part of the broker toolkit.

Looking Ahead

As interest in private credit continues to grow, we’re optimistic about the opportunities ahead—but remain committed to doing things the right way. Risk will always be a factor in lending, but with the right people, processes and principles in place, it can be managed intelligently.

For brokers and borrowers seeking flexibility without sacrificing professionalism, private credit—done properly—is a powerful tool.

Want to learn more?
If you’re a broker looking to explore funding options with Millbrook Group, or simply want to learn more about how we approach private credit, get in touch with our team today.