PRESS RELEASE 

• New guidance was developed over more than a year by senior practitioners from approximately 20 member firms, including private credit managers, institutional investors and service providers. 

• Practical recommendations cover lending and risk management, transparency, valuations, liquidity and conflicts of interest. 

• ASIC has reviewed the guidance, which addresses issues raised in its recent examinations of Australia's private credit market. 

Sydney, 10 November 2026 - The Alternative Investment Management Association (AIMA) and its private credit affiliate, the Alternative Credit Council (ACC), have published comprehensive new guidance for Australian private credit managers, setting out recommended practices to strengthen governance, lending standards, transparency and investor protection. 

Developed over more than a year,  AIMA’s and ACC’s Sound Practices for Australian Private Credit Managers draws on contributions from approximately 20 member firms, including private credit managers, institutional investors, lawyers and fund administrators. The guidance also draws on AIMA and ACC's global private credit expertise, bringing international experience to the Australian market. 

AIMA was specifically identified in the Australian Securities and Investments Commission’s (ASIC) 2025 report as one of the industry associations well placed to contribute to stronger standards, and the recommendations address several of the key concerns raised in ASIC's recent reviews of Australia's private credit market. ASIC has reviewed AIMA’s guidance in full. 

Institutional investors have been closely involved in developing the guidance and will play a central role in encouraging its adoption. AIMA and the ACC are working with institutional investor members to encourage its use when assessing managers, creating a commercial incentive for managers to demonstrate how their practices measure up or explain any material departures from the recommendations. 

Among the key recommendations, the guidance calls for: 

1. Sound lending and risk management - clear credit assessment procedures, ongoing borrower monitoring and earlier identification of deteriorating loans and concentrated exposures. 
2. Greater transparency - clear, consistently applied definitions and reporting of arrears, defaults, impairments and restructurings, giving investors a better understanding of underlying credit risk. 
3. Clear and consistent valuations - documented valuation methodologies, appropriate oversight and clearer disclosure of property security values, including whether these are assessed on an ‘as is’ or ‘as if complete’ basis. 
4. Improved liquidity management - redemption arrangements that reflect the liquidity of underlying loans, supported by stress testing and clear disclosure of potential withdrawal restrictions. 
5. Greater fee transparency - disclosure of total manager remuneration, including borrower-paid fees, loan extension fees, default-related income and retained interest margins, alongside stronger management of conflicts of interest. 
6. Greater transparency around investor distributions – clearer disclosure of how distributions are funded, including the extent to which they are supported by cash received from underlying loans, as opposed to capitalised interest, borrowings, reserves or investor capital. 
7. Stronger management and disclosure of conflicts of interest – clear identification, management and disclosure of potential conflicts, including related-party transactions, loan allocations and co-investments, and the controls in place to protect investors. 

The voluntary, principles-based guidance recognises the diversity of lending strategies, assets, fund structures and investor bases across private credit. Rather than prescribing a uniform approach, it encourages managers to review and strengthen their practices in ways they can clearly document, justify and explain to investors. 

AIMA and ACC will support its adoption through workshops, roundtables and industry education throughout 2027, bringing managers, institutional investors and other participants together to discuss how the recommendations can be applied in practice. The guidance is intended to evolve, with further refinements informed by industry feedback and the outcomes of these discussions. 

Michael Gallagher, AIMA's Managing Director and Head of Australia, said the guidance represented an important industry response to the concerns raised by ASIC and recent events. 

"We believe private credit plays a crucial role in financing Australian businesses and supporting Australia's productivity, a contribution ASIC’s former Chair, Joe Longo has repeatedly recognised. As Australia's private credit market matures, best practices must evolve with it, and this guide represents the industry’s proactive contribution to that effort. 

“Drawing on more than a year's work by fund managers, institutional investors and other experts, these recommendations bring together experience from Australia and around the world. They offer practical ways for managers to maintain high standards while recognising that different lending strategies and fund structures call for different approaches. 

“AIMA and ACC have a long track record of helping members develop and share sound practices. We are grateful to everyone who contributed to this work and look forward to supporting its adoption across the Australian market.”