ASIC just warned that millions of Australians are exposed to the private credit boom through their super and most have no idea.

Private credit is loans from investment funds instead of banks, mostly to property developers who couldn’t get bank money.
The sector exploded over the past decade and has never been tested in a real downturn.
The sector is now facing its first real test. Tighter liquidity, borrower stress, credit deterioration. ASIC’s survey of 52 funds holding $76 billion found pockets of rising defaults and shrinking liquidity buffers.
They warned if Australian property is overvalued and these practices continue at scale, we could see liquidity problems, delayed reporting and more defaults.
ASIC also found funds where the same committee approving the loans was also valuing them.
US and European private credit is already cracking, rising defaults and investors locked out of redemptions.
Australia’s difference is more exposure to construction and property.