Boutique manager’s private debt fund registered in Japan

Boutique investment manager and non-bank lender, Zagga, has announced its inaugural private debt fund has been registered as a Foreign Investment Trust in Japan.

The Zagga CRED Fund (ZCF) was first launched in Australia in August 2023 and will now be made available to a rising number of Japanese investors looking for opportunities in Australian real estate private credit due to its income-generating, diversification and defensive capabilities.

“Registering the Zagga CRED Fund as a Foreign Investment Trust with Japan’s FSA is a logical extension of our desire to attract investors from outside Australia, and particularly from southeast Asia,” Alan Greenstein, CEO of Zagga, said.

“This move complements our Singapore sub-Fund and extends our direct investment offering to a wider Japanese investor-base looking to access the same defensive and income-generating potential that has resonated so well with our Australian investors.”

Greenstein also said that the expansion signals the rising demand and interest in alternatives due to their hedging abilities against market volatility and delivery of stable returns.

Investing in a carefully-constructed portfolio of credit-vetted, mortgage-secured loans in the commercial real estate sector, the fund has outperformed its target net return of the overall capitalisation rate (OCR) plus four per cent per annum for wholesale investors since inception.

The Zagga CRED Fund is currently available on platforms in Australia including Netwealth, Praemium, HUB24 and BT Panorama.