Qualitas seizes on private credit shift to Europe

Qualitas is firmly positioning itself in the UK with a major acquisition as it bets on institutional investors' shifting appetite for private credit opportunities away from the US to Europe and APAC.

The alternative real estate investment manager completed the acquisition of the investment management business of Starz Real Estate UK-based commercial real estate (CRE) private credit manager on June 12. Qualitas paid $35.7 million in cash.

Founded in 2018, Starz manages a CRE credit portfolio of $720 million comprising 11 investments backed by institutional capital, including sovereign wealth and pension funds.

It has 10 full-time employees across origination, asset management, and operations functions spanning multiple pan-European jurisdictions.

"The establishment of our first offshore office in the United Kingdom in FY26 positions Qualitas to capture this shift directly, expanding our addressable market approximately fivefold and marking an important step in extending the platform beyond Australia," Qualitas said in line with releasing its 2026 financial year results.

On top of investors diversifying away from US market volatility, the move is also based on Qualitas citing research showing that 79% of institutional investors planning a private credit commitment intend to invest in only one fund.

"Institutional allocators are consolidating around established managers with proven track records, creating a strong barrier to entry that favours Qualitas' platform," the fund manager said.

Furthermore, it is in "active discussions with existing and new investors on a pan-European private credit fund to anchor the Qualitas Europe business."

Qualitas group managing director and co-founder Andrew Schwartz said the business is well positioned to benefit from rising global institutional demand for private credit.

"Looking ahead, our platform is built to capitalise on growing global institutional demand for private credit, supported by our proven track record and deep industry expertise," Schwartz said.

"We are progressing the launch of our pan-European fund, with capital raising expected to commence in FY27. Our European portfolio continues to perform in line with expectations, with one investment fully realised since 30 June 2026 as anticipated."

The group's total funds under management jumped 36% to $11.9 billion over the 12 months to June-end. Net profit after tax came to $44.3 million, up 20% year on year.