Melbourne’s Oak Capital Faces ASIC Investigation

Melbourne-based Oak Capital, a non-bank lender specializing in real estate, is under investigation by the Australian Securities and Investments Commission (ASIC). The probe focuses on how Oak Capital handles its fee structure as part of a broader crackdown on the private capital market.

ASIC recently announced it is forming a team to investigate conflicts of interest and asset valuation practices among private credit firms. Oak Capital, which manages $700 million, has been identified in these inquiries, though no specific fund has been singled out.

Sources suggest ASIC is examining whether Oak Capital imposes excessive fees on borrowers for minor late payments. Oak Capital has denied any contact from ASIC about its fees, calling the claims unfounded.

The firm raises funds from various investors and provides loans backed by real estate. As private credit grows in popularity, concerns about transparency and high fees persist.

Original Story published in the AFR by Primrose Riordan and Aaron Weinman