High Returns Lure Wealthy Investors to Fund Coal as Banks Exit.

Wealthy Australians are becoming a significant source of capital for coal projects that have been rejected by banks due to environmental concerns. Income Asset Management Group Ltd. is one fund manager targeting these wealthy individuals, offering investment returns of 12% to 13% per year. The firm has already placed over A$500 million in loans in the last three years in coal and commodity-related infrastructure projects. While there is opposition to coal developments in Australia, the financing pipeline for coal-related projects remains healthy. However, there are concerns about the risks associated with lending to complex projects in the relatively new private credit market. [Extracted from the article]