Why Private Credit Resonates with Family Offices – And Why Australia Leads the Way

Over the past few years, I’ve had more conversations than ever with family offices looking for something very specific: stability. Not just diversification or yield, but genuine, defensible stability in an unpredictable world. And more often than not, those conversations turn to private credit.

Moving Away from the Noise

The global market has felt like a rollercoaster – geopolitical tensions, rising interest rates, and choppy equities have made many investors reassess what really deserves a place in their portfolio. That’s why it didn’t surprise me to see that allocations to private credit by family offices doubled over the past year, as noted in UBS’s 2025 Global Family Office Report. It’s about locking in yield and removing some of the emotional baggage that comes with daily mark-to-market volatility.

Private credit gives investors access to contracted income, often backed by real assets and security. When we’re speaking with wholesale investors, this kind of predictability is increasingly the baseline requirement—not a bonus.

Source: UBS Global Family Office Report 2025, pp. 12–13

Australia – A Global Outlier (In a Good Way)

What makes Australia especially interesting is how compelling our market is to offshore capital. The domestic private debt market has grown to AU$205 billion as of 2024—and for good reason. We offer a rare blend of legal certainty, creditor-friendly structures, a strong economy, and attractive illiquidity premiums. It’s no wonder foreign capital is flowing in.

Source: Australian Bureau of Statistics; Alvarez & Marsal; Private Debt Investor, 2024

Family Offices: Strategic Shifts Playing Out in Real Time

I’ve seen a noticeable shift in the way family offices think about private credit. It’s not a short-term tactical play anymore. It’s becoming part of the core. In fact, family offices made up 40% of active private capital investors in Australia in 2024, up from just 10% in 2020. That’s an extraordinary trend.

They’re moving toward endowment-style portfolios and increasingly want assets that align with their values: control, transparency, and long-term consistency. Private credit checks all those boxes.

Source: InvestorDaily, 2024; UBS Global Family Office Report 2025, pp. 6–10

Where Princeton Financial Services Comes In

At Princeton Financial Services, we’ve carved out a niche by doing things differently. We’re not trying to be the biggest. We’re focused on being one of the most aligned and transparent managers in the market. Our independent credit committee, trustee and custodian structure gives investors confidence that governance is real—not just lip service.

We co-invest alongside our clients. We communicate frequently. And with returns above 10% on our senior secured real estate credit strategy, we’re delivering consistent income without the whiplash of listed markets.

Final Thoughts

Private credit isn’t just having a moment—it’s becoming a structural part of sophisticated portfolios. And in this space, Australia has a lot to offer. At Princeton, we’re proud to offer a platform that reflects what today’s family offices are really looking for: transparency, alignment, and dependable performance.

Thanks for reading—always happy to continue the conversation.