Australia’s private credit sector is facing increased regulatory attention, with the Australian Securities and Investments Commission (ASIC) raising concerns about the rapidly growing market, which has reached an estimated $150 billion in 2025.
In a February discussion paper, ASIC flagged growing concerns over corporate governance, asset valuation, reporting, and transparency. The regulator’s review comes as unlisted investments gain popularity, offering alternatives to traditional exchange-traded assets such as bonds, shares and treasury notes.
In response, Princeton Financial Services — a Sydney-based investment firm founded in 2012 — has introduced a pooled Commercial Real Estate Debt (CRED) fund it says directly addresses these regulatory concerns. Launched in late 2024, the Princeton Property Income Fund (PPIF) integrates independent oversight, risk mitigation structures, and quarterly performance reporting as core features.
“High returns may grab attention from investors but achieving them with regularity and control speaks volumes about underlying quality and safety in a fund,” said George Gadallah (pictured), Princeton’s chief executive.
PPIF’s framework includes an independent trustee and custodian in Perpetual Corporate Trust, an external credit committee to review loans, third-party financial audits by Pitcher Partners, and investor reporting managed by registry firm APEX.
A news release noted that the fund’s initial quarterly results reported a gross return of 10.305%, closely aligning with its target of 10.35% per annum. Unit pricing remained steady at $1, while investor reserve is at 4.23%. Princeton’s long-term performance includes $600 million in commercial debt issued without investor losses and an average annual return of 11.61% since inception.
“When creating PPIF, we set out to offer a fund that provides flexibility whilst maintaining our high-performance targets,” said Craig Anderson, co-founder and executive director.
Princeton said it maintains a first loss reserve of up to 5% (or $5 million), placing the firm’s own capital ahead of investor funds in the risk structure. The firm boasts a 4 Star – High Investment Grade rating from SQM Research.
ASIC’s discussion paper on Australia’s evolving capital markets emphasizes that private markets have become a significant source of funding over the past decade and are expected to continue growing. These markets include investments in assets not traded publicly, such as private capital funds, non-bank financial lending, and direct investments in private companies, infrastructure and debt.
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