Alceon receives 4-star rating from SQM

SQM Research has awarded a 4.00-star rating to alternative investment manager, Alceon’s retail private debt fund, the Alceon Debt Income Fund.

Doubling in size during the 2022 financial year, the Alceon Debt Income Fund was launched to provide retail clients the opportunity to expand their credit exposure through a portfolio of private debt in Australian real estate.

The fund invests in a portfolio of registered first ranking mortgages in Australian property primarily on the east coast, financing real estate development, construction and ownership. It also invests in secured senior and second ranking loans only with a maximum loan-to-valuation ratio of 65 per cent.

It has also returned 8.18 per cent since inception to 31 July 2022.

“The Alceon Debt Income Fund differentiates from others in the segment by offering an institutional grade fund with a core focus on short duration, secured real estate debt,” Grant Atchison, Head of Real Estate Funds Management at Alceon, said.

“Alceon and market commentators estimate that non-bank lending in the Australian residential real estate and construction market is between $20 billion and $50 billion.

“The fund allows advisers to access this growing institutional asset class that benefits investor portfolios with regular distributions and downside protection during volatile periods.”

During the rating process, SQM Research said the Alceon Group has a “well-resourced and highly experienced investment team” that contributed to its rating.

“The Alceon Group has more than a 10-year track record in the Real Estate/Investments industry and has about $4.3 billion in FUM and about 65 staff members,” the ratings house said.

“The investment/lending process is thorough and robust. Significant due diligence on investments is undertaken, with independent property and construction industry experts engaged along the investment pipeline. A series of monitoring protocols are in place to mitigate default risk.”