Bathla’s collapse an iceberg for private credit market

Thursday 1 October 2026

The private credit market, which has grown to around $200 billion in assets, has become a key lender to developers as traditional banks pull back from construction lending due to tightening risk appetites.

However, the recent collapse of property developer Bathla Group has thrown the sector into disarray.

Bathla Group entered voluntary administration in late August after running out of cash, leaving $3.6 billion in private‑credit debt, 2,000 homes mid‑construction, and 15,000 planned dwellings in limbo.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.