Australia’s private credit market is facing fresh scrutiny after the collapse of a billion-dollar property empire linked to businessman Jon Adgemis.

The fallout has raised concerns about the risks of non-bank lending and the growing exposure of investors to private credit funds.

Regulators warn that a major property downturn could trigger wider financial problems if risky loans fail.

Private credit in Australia has expanded rapidly, with a large share of lending connected to property development and construction.

Experts say investors need greater transparency as superannuation funds and private lenders increase their involvement in the sector.

The collapse has become a warning sign for Australia’s financial system, highlighting the need for stronger risk management.