On Thursday 31st May, the team at Pallas Capital were delighted to host a number of our valued advisers for a market update and sit-down cheese and wine tasting at Bibo Wine Bar in Double Bay.
The afternoon commenced with a thoughtful real estate market outlook for 2024 presented by Head of Research at CBRE, Sameer Chopra. He cited the triple boost of rising population, rising jobs and rising income as a source for optimism for the next 12 months. He also addressed significant challenges, including the officer sector, but reassured that Australia remains ahead when compared to global markets.
Guests also heard from Pallas Capital Executive Director, Criag Bannister in a Q&A session moderated by Pallas Capital Partner – Wealth, Reuban Sivarajasingam, about how non-bank landing in Australia offers a compelling opportunity for investors due to several factors, including:
- ADI Regulation: ADIs face stringent regulatory requirements, limiting their lending capacities. Non-bank lenders, operating outside these constraints, can fill the lending gap, offering competitive rates and terms.
- Alternative investments: Family offices and ultra-high-net-worth individuals (UHNWIs) are increasingly investing in non-bank lending as an alternative to public credit markets and income from stocks, seeking higher yields and diversification.
- Stock market challenges: Stocks outside the ASX100 are struggling to grow valuations amid rising interest rates and a slowing economy, driving investors to seek better returns elsewhere, such as those in private lending.
- Reduced public debt and IPOs: With public debt shrinking and fewer IPO opportunities, investors are turning to non-bank lending as a viable and attractive investment option, filling the financing gap and potentially achieving higher returns.
Additionally, the Q&A session delved into Pallas Capital’s credit and lending process and the strategies the team employs to mitigate risk.
We extend a heartfelt thanks to our guests for joining us and participating in an afternoon of insightful discussions.
Thank you to our guests for joining us and participating in an afternoon of insightful discussions. If you were unable to attend but would like to access presentation materials, kindly email wealth@pallascapital.com.au
