Macquarie expands into fund finance
Macquarie Asset Management has expanded its private credit offering into credit portfolio financing, starting with a $100m (£81.6m) loan to a US direct lending manager.
The Australia-headquartered investment behemoth said that it is looking to provide new sources of capital to investment managers active in the fund finance market, which is estimated to be at least $575bn globally.
It will aim to secure diversified and low risk exposures to middle-market corporates through the product expansion.
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“We are pleased to announce the build out of our fund finance capabilities with our expansion into credit portfolio financing,” said Kit Hamilton, head of infrastructure and investment grade private credit at Macquarie Asset Management.
“This reflects our view that the sector can offer a defensive entry point into middle-market direct lending, diversification and the potential for stable cash flows.”
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Macquarie’s first investment into the sector is a $100m loan to the flagship fund of an unnamed “major US direct lending manager”. It said that the investment provides leverage for a broadly diversified portfolio of middle-market corporate loans.
The asset manager’s expansion into credit portfolio financing is being led by Steve Berry and supported by Roger Fox.
Berry has more than two decades of experience in structured lending and fund finance, and since joining Macquarie Group six-years ago he has supported more than €1bn (£872,000) of fund financing facilities.
Fox joined Macquarie Asset Management in 2021 from Lloyds Bank where he was a relationship director. Roger has over 10 years of experience in corporate lending and fund finance, having previously led the origination and management of over €3bn of private credit and private equity fund finance transactions.
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“As we move into a new macroeconomic regime, we are seeing material change in the dynamics of the credit portfolio financing market,” said Berry.
“At a time when borrowers are increasingly seeking larger and more bespoke financing solutions to support their fundraising activities, the lending landscape has changed, and this has impacted the terms that are available to them. This is presenting significant opportunities to alternative lenders and I’m excited that we are stepping in with a solution.”