QIC has awarded boutique specialist Revolution Asset Management a mandate to originate and manage its Australian New Zealand private debt, through a co-investment relationship.
Revolution will lead the origination of new transactions and provide full credit analysis and structuring of private credit opportunities for QIC, allowing the institutional investor access to private markets with its relationships and experience in the segment.
Revolution chief investment officer Bob Sahota said there has been a trend towards private credit investment as Aussie and Kiwi institutional and wholesale investors seek out “reliable and defensive income” in a low yield, low inflation environment.
“Large investors are repositioning their portfolios for defence in this highly uncertain environment, and the qualities of Australian and New Zealand private debt offer patient investors with an appealing solution,” Mr Sahota said.
He added his firm has had a key focus while the markets have been “somewhat subdued”.
“In terms of deal flow, what we have [witnessed] over the last two to three months is that the market for secondary transactions is providing the opportunity to participate in [high-quality] transactions at a significant discount to the original face value of loans and ABS securities,” Mr Sahota said.
“The effect of this is that we are able to purchase the same assets that we know extremely well (that we’ve invested in our first fund) but buying at a much more opportunistic level and have our co-investors participate. Sellers are forced to liquidate otherwise performing assets, as a result of having to raise liquidity to meet redemptions in their own funds.”
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].