The exchange-traded fund (ETF) provider on Monday launched the Betashares Private Capital Cliffwater Private Credit Fund, the first of its kind in Betashares’ newly established private capital division.
The unlisted fund aims to provide wholesale investors and financial advisers with cost-effective access to a diversified portfolio of senior loans to predominantly US middle-market companies via a fund managed by private markets manager Cliffwater LLC.
According to Betashares, the underlying strategy has delivered attractive risk-adjusted returns with a strong degree of capital stability across different market conditions.
Upon launching its private capital arm, Betashares flagged its push into the asset class was a key part of a long-term strategy of building a diversified financial services business. Betashares is building a range of initiatives – including Betashares Direct, superannuation and now Private Assets – beyond its range of ETFs.
Industry figures have previously cautioned that attempts to package private credit into ETFs risk distorting an illiquid asset class and undermining investor outcomes.
Namely, at the Australian Wealth Management Summit in Sydney last month, Stéphane Blanchoz, BNP Paribas Asset Management’s head of alternative solutions, said: “We have to be careful when we talk about ETFs because we’re turning something illiquid into something liquid, and off we go.
“I’ve seen many initiatives to have a private credit ETF, and we’ve seen that in the US, but to me it’s not conclusive yet.”
Chasing compelling risk-adjusted returns
Betashares’ first offering from the private capital division opens up compelling opportunities for those comfortable with risks associated with an inherently illiquid asset class, founder and chief executive officer Alex Vynokur said.
“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.
“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,” Vynokur said.
Vynokur added that Cliffwater’s multi-lender strategy offers a strong 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.”
The underlying Cliffwater Corporate Lending Fund Platform currently holds exposure to more than 3,800 individual loans across sectors including healthcare, industrials, IT and financials.
Its portfolio largely consists of senior secured, floating-rate loans to established US businesses, with the platform delivering a net annualised return of 9.63 per cent in US dollars since inception in June 2019, as at 30 June 2025.
Betashares noted that Cliffwater’s multi-lender structure supports diversification and risk management compared to single-manager or single-sector strategies.
Vynokur said the initiative is intended to responsibly expand investor access.
“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.”
The launch marks a milestone for Betashares, which has sought to broaden its suite of investment opportunities.
