Barrenjoey has launched a US$280 million private credit fund with the aim of delivering strong returns while also facilitating support for a range of social-purpose organisations.
The new Community Capital Credit Fund (CCCF) has received a cornerstone investment from the Australian Retirement Trust (ART) and foundation investments from super funds and philanthropic foundations, including the Minderoo Foundation, MLC Insignia and Legalsuper.
It will provide diversified global private debt exposure through leading managers such as Partners Group, Varde Partners, Hayfin, PAG and Bain Capital Credit, who have all contributed capacity in their funds on a pro bono basis.
The management fees of the CCCF, excluding operating costs, will be donated to 10 to 15 social-purpose organisations, with expected donations of $10 million to $20 million over the life of the fund.
“By providing access to early-stage funding for social purpose organisations, Community Capital will help them scale to create more impact in their communities,” said Barrenjoey CEO Brian Benari.
“This support will put them on a pathway to sustainability once they have demonstrated the impact of their model.”
Community Capital is the new social purpose portfolio management firm founded by Barrenjoey alongside Laurence Marshbaum, the founder of the philanthropic movement 10×10 and former senior portfolio manager at ART.
Barrenjoey has been named manager of the CCCF while Community Capital is the portfolio manager, with Mr Marshbaum taking on the role of executive portfolio manager.
“The firms we have selected are all market-leading global private credit funds with strong track records in private credit, are signatories to the UN PRI and have made a commitment to creating a positive social impact in Australia,” he said.
“The generous support of these firms has made this initiative possible.”
ART CIO Ian Patrick said that the super fund was proud to be involved in the investment, which he said would help drive positive social impact across the country.
“As one of Australia’s largest superannuation funds, we’re committed to helping solve problems for our community and society while not compromising on our fiduciary duty to our members, and this investment is an innovative example of how we can do both,” he said.
