The Rise of Private Credit – A Conversation with Capstone Funds’ Frances MacDonald

Private credit has rapidly evolved into one of the most sought-after asset classes in Australia, offering investors attractive returns, stability, and asset-backed security. But what’s driving this shift, and what should investors look out for?

In this exclusive interview with Ausbiz at the recent Private Access event, Frances MacDonald, Founder and Director of Capstone Funds, unpacks the opportunities, risks, and realities of private credit investing. She shares insights on why the market has grown so rapidly, where private credit fits within a modern investment portfolio, and how Capstone’s fixed 10% p.a. return with monthly distributions is designed to offer investors predictable income with strong downside protection.

Key topics covered in the discussion include:

✅ The rapid growth of Australia’s private credit market and the factors driving it

✅ The spectrum of private credit investments and their risk-return profiles

✅ How Capstone Funds differentiates itself through a diversified, first-loss protected structure

✅ Lessons learned from market defaults and what investors should watch for

✅ Why private credit is becoming a preferred alternative to direct property investment

For those considering private credit as part of their investment strategy, this interview provides practical insights on risk management, fund manager alignment, and the future of the sector.

🎥 Watch the full interview below to hear Frances’ expert take on why private credit is more than just a trend—it's a strategic investment opportunity in today’s market.