Betashares’ new private capital arm delivers first fund offering

Just three weeks after debuting, Betashares’ dedicated private capital division has brought its first solution to market, developed in partnership with US-based fund manager, Cliffwater.

The Betashares Private Capital Cliffwater Private Credit Fund delivers Australian wholesale investors and financial advisers access to an underlying fund managed by Cliffwater that offers exposure to a diversified portfolio of senior secured loans to US middle-market companies.

The Betashares fund allows investors to tap into traditionally unavailable opportunities typically open only to institutional investors, with the benefits of transparency, a cost-effective management fee, daily applications and a quarterly redemption facility

“For nearly 15 years, we have been focused on delivering high-quality investment opportunities that offer compelling risk adjusted return profiles as part of a diversified portfolio,” Betashares Founder and Chief Executive Officer, Alex Vynokur, said.

“In service of this mission, our new US private credit exposure, delivered in partnership with Cliffwater, demonstrates our intent to selectively partner with best-in-class private asset managers to deliver institutional-grade investment solutions to eligible Australian investors and their financial advisers.

“Cliffwater’s unique multi-lender investment strategy has a very compelling track record. We’re proud to be partnering with a high-quality asset manager to unlock a diversified pathway into US private credit for Australian investors.”

Leveraging the strong performance track record of the underlying fund, which delivered 9.63 per cent net annualised return in USD since 2019, the AUD-hedged unlisted Betashares fund seeks to return an estimated eight to nine per cent per annum.

Betashares’ first foray into private credit also harnesses the investment and research power of Cliffwater’s flagship Corporate Lending Fund Platform via the US manager’s underlying fund, which currently boasts exposure to over 3,800 individual loans across sectors such as healthcare, industrials, IT and financials.

“By enabling responsible access to a high-quality private credit exposure, investors and their financial advisers have the opportunity to earn compelling risk adjusted returns. Over time, we’re looking forward to building on our private assets offering to offer more institutional grade investment solutions in areas where Australian investors have been traditionally underserved,” Vynokur said.

Financial advisers will have access to the fund on the major platforms, while eligible wholesale investors can access via Betashares Direct.