Australia’s HMC Capital expands into private credit

Sydney-based alternative asset manager HMC Capital is looking to establish a AUS$5bn (£2.6bn) private credit asset management platform, to tap into a growth opportunity it says is “too big to ignore”.

As the first steps in its strategy, the firm has acquired Australian commercial real estate private credit fund manager Payton Capital and appointed former Macquarie senior managing director Matt Lancaster as chair of HMC’s private credit platform.

Australian Securities Exchange-listed HMC manages over AUS$10bn of assets across real estate and private equity strategies.

Read more: Another Australian pension fund to increase private credit allocations

Its new private credit platform will span real estate, corporate, mezzanine and infrastructure loans in the medium-term, HMC said.

“We see the growth opportunity in this sector as too big to ignore with private credit asset managers playing an increasingly larger role in Australia’s $1.2tn credit market,” said HMC Capital managing director and chief executive David Di Pilla.

“The acquisition of Payton provides HMC with an attractive entry into the private credit sector via a highly profitable and scalable platform. This will enable HMC to take advantage of attractive industry fundamentals and investor appetite for CRE private credit.”

Read more: Pengana’s private credit trust IPO exceeds minimum subscription

To support the acquisition of Payton Capital, HMC is raising AUS$130m, comprising a AUS$100m institutional placement and a AUS$30m security purchase plan.

HMC has also realised AUS$50m from selling down its investment in the HomeCo Daily Needs REIT from 14 per cent to 12.1 per cent.

Read more: Macquarie deploys $A1.5bn into private credit