Global alternative asset manager MA Financial Group (ASX: MAF) has announced the launch of the MA Credit Income Trust (ASX: MA1), its first listed investment trust.
MA Financial has secured $171m in cornerstone commitments and will today formally lodge with the Australian Securities and Investments Commission the Product Disclosure Statement (PDS) for MA1, ahead of a pre-listing offer period to commence on Tuesday 28 January 2025. The Fund is expected to list on the ASX on Wednesday 5 March 2025.
The Fund offers investors access to a large, diversified portfolio of MA Financial’s flagship private credit strategies which have delivered consistent returns and outperformed traditional benchmarks for fixed income investments since inception.
Aiming to provide investors with consistent monthly distributions with a focus on capital preservation, the Fund targets a return of the RBA Cash Rate + 4.25% per annum over a rolling 12-month period (pre-tax, net of management fees and costs) via exposure to a diversified portfolio of Australian, New Zealand and global credit investments.
Investors in the Fund benefit from exposure to an underlying $3.7bn portfolio of 165 private credit investments, diversified across lending strategies in which MA Financial has a proven track record and specialist capabilities: direct asset lending, asset backed lending and direct corporate lending.
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Chris Wyke, MA Financial’s Joint Chief Executive Officer said: “The launch of the MA Credit Income Trust marks an important step for MA Financial, as we continue to broaden our offering to clients and build our presence as a leading private credit asset manager.
“We’ve seen enthusiastic initial demand from the market, with the commitment of $171m in cornerstone capital on the way to our $300m target for the impending offer period from 28 January to 10 February 2025.
“At the core of our culture is alignment of interests with our investors. Investors will join MA Financial and our staff who have co-invested over $190m in all MA Financial private credit funds, including $160m in the underlying private credit funds from which MA1 obtains its investment exposure”.
Frank Danieli, Managing Director and Head of Credit Investments and Lending at MA Financial said: “MA Financial’s private credit investment philosophy is based around avoiding losers, not picking winners. This mindset informs our approach to selecting and structuring investments, constructing our portfolios, monitoring positions and managing risk.
“In developing this Fund in consultation with our key investors and industry stakeholders, we’ve prioritised two key aspects critical to them, being transparency and liquidity. These are fundamental to the investment proposition.
“The Fund introduces asset backed lending as what we suggest is a critical component of the investment mix, providing a missing piece for Australian investors, and also what we believe to be the next frontier of private credit globally.”
The Joint Lead Arrangers and Joint Lead Managers are Ord Minnett Limited and MA Moelis Australia Advisory. The Joint Lead Managers are MST Financial Services Pty Limited, Canaccord Genuity (Australia) Limited and Shaw and Partners Limited.
