" he says. "What are the fund's underlying assets? How does it make the money? Is it lending against property | " observes Ganguly. "On a risk-adjusted basis | " says Clark. "What investors need to determine is whether they are choosing a fund that has dealt with volatility before | " she explains. Shaun Ganguly | "Knox offers six funds | "Our name may have changed but our depth of experience hasn't." And in a sector where so many new funds are coming on board | "the underlying asset matters the most". He cites the example of a first mortgage with a low loan-to-value ratio (LVR) over a metropolitan commercial property | "We are seeing a rush of inexperienced companies come into private credit | a keen advocate for consumer education | agrees. "Private credit is not a monolith | all are backed by residential property developments in South East Queensland. "Not only can investors see the projects we are funding on the Knox website | and • The security the provider has over those assets. Experience matters As a market veteran of more than three decades | and it's absolutely vital to know what you're getting into | and it's popular with people who see a suburb they are familiar with and believe will sell well." The remaining funds | and know what the underlying assets are. "Investors need to be wary of underlying assets that are in a volatile market or are a current 'fad' that may not survive the test of time | and only lends for residential property developments in the South East Queensland area. Other private credit funds are backing very different projects | and so knows how to manage it." John Cachia | and their lack of experience can put investors' money at risk." Knox Funds has been in the market for more than 30 years | and while this is opening up more options for investors | as Shelby Clark | cautions | each fund's underlying investments should be clearly spelled out in the product disclosure documents. The catch is that some funds are more transparent than others. Clark explains | executive director of operations at Knox Funds | formerly GPS Investment Funds | founder and CEO of financial advice firm Thriving Wealth | founder and principal adviser at Prime Years Financial Planning | in other words | including retail options Knox Fortitude Fund and Arkus | Investing | it's also important to choose a private credit fund with care. Three factors can help narrow the choice. Private credit | Knox Funds recently rebranded from GPS Investments. As Shelby Clark points out | non-bank lending | pool investors' money across a range of South East Queensland-based property developments. | Private credit is one of Australia's fastest growing investment markets | says there are several key factors investors need to weigh up when it comes to selecting a private credit fund: • The experience of the fund provider • The underlying assets of the fund | small businesses or something else?" According to Ganguly | some with higher risk and less transparency about how investors' money is being used. Clark | Sponsored | that experience matters. "Every industry will experience volatility | the benefit of more choice. However | the Knox Providence Fund allows investors to choose exactly which development they would like to help fund. This gives investors next level control over what they invest in | they are chalk and cheese." While close to half the finance provided by private credit in Australia is real estate-focused | this is giving investors looking for attractive yields and regular income | you are essentially providing funds to be loaned to a variety of borrowers for a variety of purposes. Clark says it's critical to understand what a private credit fund is investing in
Private credit – not all funds are created equal
By Branded Content Team Published on August 31, 2026
Get stories like this in our newsletters.
Related stories
