In this discussion, Co-CEO Mark Hurley sits down with Rohan Barraclough, Founding Director of Ironstate Capital Partners, to explore the vision behind launching a new Australian private credit fund, the current landscape of commercial real estate (CRE) private credit in Australia, and how Ironstate plans to address emerging market risks while uncovering long-term investment opportunities.
What inspired the creation of Ironstate Capital Partners?
Ironstate was established with the clear vision of becoming a transparent, trusted private credit investment manager in Australia, serving family offices and sophisticated investors. Our mission is to deliver direct exposure to Australian commercial real estate private credit through a model that emphasises alignment, discipline, and long-term thinking.
We launched without legacy investments or pressure to deploy capital quickly, allowing us to remain highly selective and investor-focused. Every investment is made alongside our investors, reinforcing alignment and accountability. We’ve also implemented strong governance frameworks through an independent Investment Committee and independent Advisory Board, bringing investment discipline and operational oversight.
While many leading private credit fund managers were initially supported by family offices, industry maturity has led some to pivot toward institutional mandates and product structures aimed at wealth platforms. This shift has professionalised the sector, but it has also created space for boutique private credit managers—like Ironstate—to reconnect with high-net-worth investors who seek direct access, partnership, and differentiated opportunities in Australia’s CRE private credit market.
What sets Ironstate’s private credit strategy apart in the Australian CRE market?
We focus exclusively on Australian commercial real estate private credit, a sector experiencing structural growth but also growing cyclical risks. In this environment, investors must be selective and prioritise managers with a disciplined, well-governed approach.
Ironstate differentiates itself through a deal-by-deal fund structure, rather than open-ended or pooled vehicles. This approach gives investors:
- Full transparency into each transaction
- Discretion over which investments they participate in
- Greater control over portfolio construction and risk exposure
We believe this format strengthens trust and enforces investment discipline, ensuring each deal stands on its own merits before capital is committed.
How does Ironstate build and manage capital partnerships?
Strong relationships are central to our model. We partner with experienced property developers and real estate asset owners across Australia, selecting those with proven track records, financial alignment, and the ability to deliver high-quality outcomes.
While we typically invest on a project-by-project basis, we seek to establish long-term partnerships. Our role goes beyond that of a capital provider—we aim to be a value-added private credit partner, offering insight and support throughout the lifecycle of a transaction.
In addition to working with borrowers, we collaborate with other private credit fund managers and lenders to:
- Structure larger or more complex facilities
- Leverage different parts of the capital stack
- Bring in location- or asset-specific expertise
This collaborative mindset enhances flexibility and enables us to tailor funding structures for unique real estate opportunities.
What are the current challenges and opportunities in Australia’s private credit landscape?
The CRE private credit market in Australia is increasingly competitive. However, we are not pursuing scale by compromising on credit quality, lowering margins, or loosening covenants. Our pipeline is focused on:
- Long-standing relationships
- Less contested transactions
- Opportunities arising from market dislocation
Where most managers focus solely on direct lending, Ironstate also has the capability to offer syndicated debt, underwriting, and secondary investment solutions. These alternative approaches are especially valuable in a market facing tightening liquidity and economic uncertainty.
How will Ironstate Capital Partners navigate market headwinds and deliver investor value?
We bring a measured and cautious lens to today’s market. Many managers have benefited from favourable conditions over the past decade, but as economic pressures and dislocations emerge, performance divergence will become more evident.
Our lean cost structure, absence of legacy exposure, and flexible investment mandate position us well to identify and capitalise on attractive, risk-adjusted opportunities. We are prepared to act decisively when value is clear—and to remain patient when it is not.
What is Ironstate’s long-term mission in Australia’s private credit market?
Our mission is to deliver lasting value to investors while contributing to the development of Australia’s built environment. This means:
- Building financial outcomes for investors
- Supporting the success of real estate borrowers
- Establishing trusted partnerships within the ecosystem
- Contributing to economic growth through property investment in Australia
We view the property industry not just as an investment opportunity, but as a core pillar of Australia’s prosperity—supporting jobs, infrastructure, and community engagement. Whether it’s increasing housing supply, enhancing commercial assets, or creating spaces for people to live and connect, our goal is to play a meaningful role in building a better Australia.
We thank Caruso for their collaboration with Ironstate Capital Partners. Discover their expertise in private credit by visiting Caruso’s Website
