Alternative asset manager MA Financial has launched its first listed private credit investment trust in Australia.

The MA Credit Income Trust (MA1) is expected to list on the Australian Securities Exchange on 5 March 2025, with a pre-listing offer period commencing on 28 January.

It targets a risk-adjusted return equivalent to the Reserve Bank of Australia cash rate plus 4.25 per cent, over a rolling 12-month period.

MA Financial has secured AUS$171m (£87.25m) in cornerstone commitments, and aims to raise AUS$300m during the pre-listing offer period.

“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,” said Chris Wyke, MA Financial’s joint chief executive.

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“We’ve seen enthusiastic initial demand from the market, with the commitment of AUS$171m in cornerstone capital on the way to our AUS$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 AUS$190m in all MA Financial private credit funds, including AUS$160m in the underlying private credit funds from which MA1 obtains its investment exposure.”

MA Financial has AUS$9.9bn assets under management, with AUS$4.6bn of that invested in private credit.

The new fund will offer retail investors access to a large, diversified portfolio of MA Financial’s flagship private credit strategies. These include direct asset lending, asset backed lending and direct corporate lending.

“MA Financial’s private credit investment philosophy is based around avoiding losers, not picking winners,” said Frank Danieli, managing director and head of credit investments and lending at MA Financial.

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“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.”

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