A letter from Jason Arnold, Group Executive – Origination
As we close out FY25–26, it’s clear this has been a defining year for Pallas Capital.
Against a backdrop of ongoing market volatility, shifting credit conditions and evolving borrower needs, we’ve remained focused on our core areas of expertise — delivering disciplined, responsive lending solutions and building long-term partnerships with brokers, borrowers and developers across the country.
Strong growth, strong demand
Over the past 12 months, we have observed continued demand for our lending solutions, with brokers playing a key role in originating opportunities across our platform.
We have continued to invest in this channel, including expanding our BDM team and increasing engagement through a program of targeted events nationally. We have also grown our direct-to-developer channel, including strategic hires to support earlier engagement across the project lifecycle.
Key metrics for the year:
- Total originations: $2,696,048,863
- Loan book growth: 14%
- Team growth: 17 employees across Australia and New Zealand
- Funds under management: $4,520,000,000 (as at 30th June 2026)
Capital partnerships
A major highlight this year was the strengthening of our funding platform, with the successful establishment of new institutional funding lines, including our $500 million facility backed by a leading Wall Street credit investor, alongside one of Australia’s big four banks coming in as majority funder to a $380 million facility, providing significant capacity and supporting strong loan origination volumes.
These partnerships are a strong endorsement of the Pallas platform and provide the scale and flexibility to support new product initiatives, while ensuring we can continue to meet the growing needs of our borrowers and broker network.
National expansion and reach
We’ve continued to execute on our national growth strategy, expanding into Adelaide and Perth, broadening our geographic footprint to better support clients across key markets.
In parallel, we’ve expanded our reach into the broker community through new platform partnerships with Connective and CitoPlus, and continued to strengthen our work with LMG, ensuring Pallas solutions are more accessible than ever.
Funding real projects, in real time
Importantly, this growth has translated into real outcomes — funding a pipeline of significant projects and developments across Australia. Over the course of the year, this has included supporting transactions across Australia, working with sponsors at different stages of the project lifecycle.
Our ability to assess and execute transactions efficiently remains a core focus, particularly in a market where timing and certainty of funding are critical. This approach has enabled us to respond to borrower requirements in a considered and timely manner.
Disciplined through the cycle
While market conditions have evolved over the past 12 months, our credit approach has remained consistent. We have also seen increased regulatory scrutiny across the private credit sector, which we welcome as a positive step in reinforcing market integrity and high industry standards.
We’ve stayed disciplined, focusing on fundamentals, maintaining rigorous underwriting standards and supporting high-quality sponsors and projects. This consistency has been critical in navigating market shifts and will remain central to our strategy going forward.
Leading the conversation
Beyond transactions, we’ve continued to play an active role in shaping the conversation around commercial lending.
Through thought leadership, market insights and a national events program, we’ve engaged closely with brokers and developers — sharing perspectives, discussing emerging trends and helping our partners navigate an increasingly complex environment.
Looking ahead
As we move into FY26–27, the opportunity for Pallas Capital remains significant. Demand for alternative funding solutions continues to grow, particularly in the development and value-add space, and we are well positioned to capitalise on this. With a stronger capital base, expanded national footprint and continued investment in our people and platform, we enter the new financial year with real momentum.
Most importantly, we will focus on our core strategy — maintaining discipline, supporting our broker and borrower networks, and investing in our platform to meet demand.
I would like to thank our brokers, borrowers, capital partners and the broader Pallas team for their continued support throughout the year.
We look forward to building on this momentum in the year ahead.
Jason Arnold
Group Executive – Origination
Pallas Capital
Disclaimer: General information only. Pallas Capital’s lending activities are limited to writing loans for business and/or investment purposes only. The consumer credit protections in the National Credit Code do not apply.