A Private Debt Market for a Sustainable Aotearoa, NZ

Climate and Energy Finance Group (CEFGroup)'s new report, in collaboration with Griffith University, MyFiduciary Limited, and Private Capital Group, sheds light on developing a private debt market in Aotearoa New Zealand.

The aim of the survey is to understand the opportunities and barriers associated with developing a private debt market in New Zealand, and to elicit respondents’ views on how private debt can support the transition toward sustainability.

Key Takeaways

• There is increasing interest in private debt (PD) among both PD and non-PD investors. PD is poised to grow further in the near future.
• PD investors have had a good experience to date, and most are optimistic about PD’s growth potential.
• In New Zealand (NZ), PD is an under-utilised investment asset relative to the scope to invest.
• Main reasons for not investing in PD, among NZ respondents, are lack of experience, lack of liquidity and size of the market.
• Compared to the UK, PD market in NZ is still in its infancy, with many investors yet to make their first commitments to the asset class.
• NZ respondents prefer more conservative PD instruments characterised by lower risk.
• PD investors, on average, are greater advocates of responsible investing.
• Respondents, especially those that have had PD investments, think that it is a lot easier to achieve ESG and impact goals in private markets than in public markets.

Read the full report