As we begin 2026, I am pleased to reflect on a year that proved both defining and rewarding for Pallas Capital. Throughout 2025, we continued to build on the disciplined growth, strengthened capability and enduring trust from our investors and borrowers that form the foundation of everything we do.
A year of milestones
In 2025, Pallas Capital’s cumulative total of transactions surpassed $8.5 billion in value, while maintaining our complete capital preservation track record. This achievement is not simply a measure of scale; it reflects the rigour and professionalism that our team brings to every loan and investment that we underwrite.
Our loan book continued to demonstrate resilience and quality, supported by strong borrower performance in a stabilising economic environment. The RBA’s mid‑year rate cuts prompted a shift in sentiment, and we saw renewed confidence across key markets, particularly in Sydney, Southeast Queensland and Adelaide.
Expanding our national and international footprint
Demand for bespoke, flexible non‑bank lending solutions continued to grow, particularly in market segments less well serviced by traditional lenders. In response, we expanded our national presence with new offices in Adelaide and Perth, deepening our market coverage in South Australia and Western Australia.
These markets have shown increasing appetite for private credit, and our ‘boots on ground’ presence ensures we support borrowers with the speed, certainty and structuring expertise that define the Pallas approach.
We also strengthened our position in New Zealand, launching our Christchurch office and boosting our presence in a market that continues to value relationship‑driven lending.
Strengthening our platform
2025 saw the introduction of several key institutional senior debt facilities that enhanced our capacity to serve investors and borrowers:
- a $185 million construction finance warehouse facility with Judo Bank, providing greater flexibility and efficiency in funding high‑quality projects.
- a $500 million facility anchored by Morgan Stanley, underscoring international confidence in our platform.
- a $380 million facility, majority funded by a major Australian bank, that will finance pre-development, residual stock and investment property loans up to $7.5million in size.
Strategic appointments across origination, credit, risk, operations and distribution, further strengthening the depth and capability of our team. These additions supported the rapid deployment of capital from these new funding lines.
We also continued to invest in industry engagement, hosting our Canberra Private CRE Debt and Lending Symposium, sharing insights through our adviser conversations, and contributing to broader discussions around risk, regulation and market evolution.
A year of culture and connection
Beyond the numbers, 2025 showcased the strength of our culture.
From celebrating Holi, the Hindu ‘Festival of Colours’, with our team and partners, to another spectacular Pallas Cup on the Sydney Harbour, to welcoming new colleagues from major institutions amid shifting talent landscape – our organisation continued to grow not only in size, but in spirit.
A responsible voice in a changing landscape
Private credit remained firmly in the spotlight, with increased regulatory attention and public discussion. We welcomed ASIC’s focus on standards and transparency. Investor confidence is key, and we believe that consistent and robust operating standards strengthen the industry and maximise investor safeguards.
Looking ahead to 2026
As we move further into 2026, we do so with confidence and clarity of purpose. Our focus remains unchanged:
- delivering attractive risk‑adjusted returns for our investors,
- supporting borrowers with certainty, speed and professionalism,
- expanding thoughtfully into markets where our offering adds genuine value, and
- maintaining the discipline that has underpinned our consistent track record.
I extend my sincere thanks to our investors, borrowers, advisers and partners for their continued trust. And, as always, to our team – whose dedication, integrity and ambition drive every success – we are deeply grateful.