MA Financial has announced the launch of the MA Credit Income Trust (MA1), its first listed investment trust.
The asset manager confirmed on Monday that it has secured $171 million in cornerstone commitments and would formally lodge with the ASX, ahead of a pre-listing offer period to commence on 28 January.
MA1 is expected to list on the ASX on 5 March.
According to MA Financial, the fund will offer investors access to a portfolio of the company’s flagship private credit strategies, which have “delivered consistent returns and outperformed traditional benchmarks for fixed income investments since inception”.
In particular, this comprises an underlying $3.7 billion portfolio of 165 private credit investments, spanning lending strategies, including direct asset lending, asset backed lending and direct corporate lending.
Moreover, MA1 will be targeting a return of the RBA cash rate + 4.25 per cent per annum over a rolling 12-month period.
Commenting on the launch, MA Financial joint chief executive Chris Wyke said that MA1 marks an important step for the company as it builds its presence as a private credit asset manager.
“We’ve seen enthusiastic initial demand from the market, with the commitment of $171 million in cornerstone capital on the way to our $300 million target for the impending offer period from 28 January to 10 February 2025,” Wyke said.
“At the core of our culture is alignment of interests with our investors. Investors will join MA Financial and our staff who have co-invested over $190 million in all MA Financial private credit funds, including $160 million in the underlying private credit funds from which MA1 obtains its investment exposure.”
Expounding on this, Frank Danieli, managing director and head of credit investments and lending at MA Financial, explained that the firm’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,” Danieli said.
In developing the fund in consultation with investors and industry stakeholders, the managing director said that MA Financial has prioritised two key aspects that are “fundamental to the investment proposition” – transparency and liquidity.
“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,” Danieli said.
