MA Financial launches inaugural private credit LIT

MA Financial Group has extended its suite of alternative asset funds with the addition of its first private credit-oriented listed investment trust (LIT).

The MA Credit Income Trust, expected to launch on the Australian Securities Exchange (ASX) on 5 March under ticker code MA1, seeks to offer investors exposure to a curated and diversified portfolio of 165 flagship private credit investments in Australia, New Zealand and globally, worth $3.7 billion and with a track record of consistent returns and outperformance.

The LIT will also leverage the specialist expertise and knowledge of MA Financial in three core capabilities: direct asset lending, asset backed lending and direct corporate lending.

“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,” Chris Wyke, MA Financial’s Joint Chief Executive Officer, said.

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

The asset manager also said that the fund aims to return the RBA Cash Rate + 4.25% per annum over a rolling 12-month period (pre-tax, net of management fees and costs), with investors to receive monthly distributions.

“MA Financial’s private credit investment philosophy is based around avoiding losers, not picking winners. This mindset informs our approach to selecting and structuring investments, constructing our portfolios, monitoring positions and managing risk,” Frank Danieli, Managing Director and Head of Credit Investments and Lending at MA Financial, said.

“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.”

MA Financial also said the fund had benefitted from over $170 million in cornerstone commitments before it is set for a pre-listing offer period from 28 January, after final documents were officially lodged with the Australian Securities and Investments Commission (ASIC) on 20 January.