Labassa Capital Credit Fund Update December 2025

In December 2025, the Fund achieved an investor return of 10.24% p.a. net of fees on a 12-month rolling basis. Portfolio LVR was maintained at 49.12%. On a risk adjusted return basis, the Fund’s performance is considered strong.

In review of the current forecasts, Labassa’s view point is that Australia enters 2026 with improving economic momentum and stable financial conditions. Australia’s macroeconomic outlook for 2026 points to moderate economic strengthening, with GDP growth expected to sit in the low-to-mid 2% range as population growth, employment resilience and recovering household consumption support activity. Inflation is forecasted to continue easing but remains a key risk, leading the Reserve Bank of Australia to maintain a cautious stance. After rate cuts in 2025, interest rates are expected to remain broadly stable in 2026, with major bank forecasts split between an extended hold or modest hike should inflation persist.

The property market is forecasted to continue growing, supported by tight housing supply, strong population growth and improved borrowing capacity, with national dwelling values expected to rise at mid single-digit rates. 

Labassa Capital’s December pipeline value was $650m across 31 transactions at an average facility value of $20.9m. The majority of these transactions are NSW and QLD based. The Fund expects to receive three full repayments from existing investments in the first quarter of the year. The Labassa Investments team continues to focus on investment discipline and active portfolio management in 2026.

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