La Trobe makes ASX debut with private credit fund launch

Leading Australian alts specialist fund manager La Trobe Financial has announced the launch of its anticipated Private Credit Fund, marking its first-ever fund to be made available to investors on the Australian Securities Exchange (ASX).

The newly launched ‘low-volatility’ fund combines exposure to two flagship La Trobe strategies: its Australian Real Estate Private Credit fund via its 12 Month Term Account, as well as its US Private Credit Fund, which covers US mid-market corporate private credit investments.

La Trobe, which boasts Australia’s largest retail credit fund, said its newly launched Private Credit Fund “draws from its respective geographies and sectors to deliver a product offering consistent returns”.

The fund targets a return of 7.10 % per annum, with monthly distributions of 3.25% per annum on top of the benchmark RBA cash rate (currently at 3.85%), ex-fees. The fund has a minimum investment of $2,000.

La Trobe said it will also look to prop up performance of the fund through regular off-market and on-market buy-backs – up to 5% of the capital each calendar quarter.

La Trobe Financial chief investment officer (CIO) Chris Paton said the fund, which he notes combines two “best-in-class” strategies, provides for investors “conservative and diversified exposure to private credit, with the convenience of investing via the ASX”.

“We are delighted that we can provide our investors with another high-quality product, which we expect will deliver a strong monthly income stream.”

The fund is currently in a cornerstone period, La Trobe notes, indicating a number of advanced share-buyers in the fund pre-IPO.

An IPO for the fund will seek to raise between $100 million and $300 million through the issue of units at a subscription price of $2.00.

The fund was brought to market with a syndicate including lead arranger CommSec, alongside joint lead managers Taylor Collison, Ord Minnett, Morgan Stanley, and Shaw & Partners.

Existing retail or wholesale investors will be eligible for a priority offer to invest in the fund to be issued on or around 3 June 2025.

La Trobe chief executive Chris Andrews hailed the launch of the new fund as a “very significant milestone” for the Melbourne-based fund manager, noting it is the first time its investors are able to invest with it through the ASX.

“We are listening to our investors and will remain committed to helping Australians by continuing to provide new and thoughtful ways for them to grow their wealth. Today is another step on that journey,” he said.

As at end of FY24, La Trobe counts more than $20 billion in assets under management and over 110,000 investors and 4,500 supporting advisers.

La Trobe boasts Australia’s largest retail credit fund, with its Australian Credit Fund overseeing more than $13 billion in client funds.