Authored by Robert Grajczyk (Investment Director)
In an era that is increasingly being defined by credit algorithms, AI, and instant data feeds, one factor continues to drive real estate private credit in Australia: relationships. This is especially true when a transaction does not fit the mould of a standard bank transaction.
Deep borrower relationships and a thorough understanding of borrower objectives, combined with insight into lender risk appetite, enable brokers to translate complexity into aligned funding solutions.
AI models and agents are highly efficient when trained on large data sets from high volume activity and well-defined workflows. The broker advantage, however, lies in complexity. By focusing on situations that demand customised, as opposed to standardised high volume solutions, brokers can better serve their clients while reinforcing the strategic value of their role in this increasingly automated environment.
An Expanding Private Credit Market and the Impact of AI
Australia’s commercial real estate private credit sector has grown to around A$90 billion and is projected to nearly double to A$150-160 billion by 2029 (A&M Market Review 2025). Much of this growth reflects a market where traditional bank offerings are either unavailable, take too long or are insufficiently flexible relative to alternative private credit funding sources.
Private credit lenders recognise that brokers are helping drive private credit’s expansion. Industry surveys indicate 75% of private real estate loans are introduced by brokers (BrokerNews, 2025), meaning as the broker channel grows, private credit grows alongside it.
At the same time, banks are investing heavily in direct-to-borrower digital channels. These systems are well suited to standard lending products supported by large homogeneous lending data sets. As AI tools evolve, borrowers will likely use technology to compare pricing and structures directly in commoditised segments of the market and AI agents will be capable of transacting on the preferred loan. This is where some brokers face potential disintermediation risk.
However, this dynamic is likely to be far less pronounced in complex or bespoke transactions, where training data is sparse, workflows less defined, structures diverse, and outcomes dependent on qualitative assessment as much as quantitative inputs. In these scenarios, trusted advice and contextual judgement will remain essential.
It is in complex private credit transactions that brokers are most likely to maintain a durable competitive edge, reinforce their relevance and protect their role of sourcing capital. At GCI Funds, flexibility, speed, bespoke solutions and long-term thinking underpin our relationships with both brokers and borrowers.
Where Brokers Retain an Edge in an AI World
Complexity solved through relationships and insight is where brokers are least likely to be displaced by automated direct to lender tools.
Private credit deals are rarely uniform, even where top level quantitative metrics such as LVR and interest rate may be similar. Understanding borrower objectives, contextualising the likelihood of these being achieved and providing advice remains deeply relationship based. This is where broker judgement and relationships come to the fore, providing what AI alone can’t.
Brokers who excel in the private credit arena typically demonstrate four core strengths:
- Spot opportunities early: They identify when a deal no longer fits bank criteria and know which lenders have the ability and appetite to move quickly.
- Shape the proposal: They help sponsors package projects to meet a private lender’s credit logic, shaping feasibilities, clarifying equity and refining exits.
- Translate the story: When a project needs context, staged settlements, adaptive reuse, or an exit strategy that requires explaining, a skilled broker provides clarity and confidence.
- Build trust: Both lender and borrower require confidence that the counterparty is capable, understands risk, and will be able to apply a commercial approach. A broker initiates and reinforces this trust cycle: as confidence builds, execution speeds up, and with speed of execution more transactions can be successfully completed further building confidence.
In short, brokers that convert complexity into momentum and enhance a confidence feedback loop are those that will thrive in an AI world.
The Enduring Importance of Advice and Relationships
The broker–lender relationship continues to migrate from transactional to advisory led. Leading brokers increasingly operate as trusted capital strategists, with a clear understanding of leverage limits, risk appetite, and exit pathways. This sophistication helps borrowers compare certainty of execution against the cost of funds, and positions brokers as trusted advisors rather than a transaction intermediary.
For lenders and brokers, the benefit of mutual relationships is clear: working together allows capital to be put to work faster, with stronger risk alignment and fewer surprises. The best brokers understand it’s not about competition between lenders, it’s about collaboration with like-minded lenders.
At its best, the private credit ecosystem leverages the specialised, yet complementary, skills of brokers and lenders. Brokers bring structured, transparent transactions. Lenders like GCI deliver speed, flexibility, tailored terms and certainty of funding. Together, this alignment enables sponsors to move projects forward, whether that’s a refinance, a residual stock loan, or a mid-construction bridge.
Final Thoughts
As traditional bank lending becomes more commoditised, workflows more defined and direct-to-borrower AI tools more readily available and capable, the broker’s role of advising on complex scenarios, forming strategy, sourcing alternative capital, and accelerating outcomes becomes increasingly important.
In an AI-enabled world, it is precisely the human elements of building relationships, navigating complexity using judgement and facilitating delivery of bespoke solutions that will ensure brokers remain central to lending origination.
GCI Funds’ private credit approach is aligned with brokers operating in this environment. We remain committed to supporting transactions that require flexibility, bespoke solutions, commercial judgement and decisive execution.
We welcome ongoing dialogue with brokers seeking aligned capital partners in complex real estate transactions.