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AltX launches ‘investor-centric’ credit fund

By Jessica Penny
3 minute read

The alternative asset manager has launched an investment vehicle that reflects the “evolution” of its managed fund program.

AltX has announced the launch of a new investment vehicle, the AltX Credit Fund, designed to provide investors with access to the “full breadth” of the firm’s loan origination.

Offering investors the choice of six share classes – including short-term, senior debt, diversified and construction investment opportunities – AltX said the new structure allows investors to invest in a variety of classes that meet their preferred risk appetites, underlying loan exposures, and liquidity preferences.

The investment vehicle also includes a “credit opportunities” class, which provides exposure to credit opportunities across asset-backed, commercial mortgage-backed, and residential mortgage-backed securities.

“This is a huge milestone for AltX. Each share class within the fund provides investors with diversification and portfolio risk management, enabling exposure to a broader range of underlying loan transactions for a much lower minimum investment threshold,” commented co-founder and co-chief executive officer Steven Beinart.

“There are many ways to gain exposure to private real estate credit. The AltX Credit Fund provides the full spectrum of choice to investors, ranging from vanilla, liquid first mortgage exposure through to structured credit opportunities targeting higher yields,” Beinart said.

The company confirmed that the AltX Credit Fund was launched to current investors late last week and targets investment returns from 5.85 per cent to 12.80 per cent for wholesale investors.

“Since our inception, we have built a strong reputation for delivering consistent returns for our investors,” Beinart said.

“We have funded more than $4.1 billion deals to date, with 100 per cent capital returned to our wholesale investor base. This new fund structure reflects the continued growth of AltX in the private debt investment space and provides more choice for our investors,” he said.

Speaking on a recent InvestorDaily webcast, Beinart’s co-founder and co-CEO counterpart Nick Raphaely said private capital has gained prominence as a key component of modern investment strategies.

“The old notion of it’s a choice between equities and bonds or a combination thereof no longer really holds equally,” Raphaely said.

“We saw at the start of the pandemic in 2020, equities fell by over 35 per cent and bonds only rallied 5 or 6 per cent. So they’re not really doing their job in the way that they used to be doing.

“I think alternatives is really the space which is kind of stepped in as almost as the third pillar to provide investors with a range of choice. Now, obviously, alternatives as an asset class capture a lot.

“Our focus area is private real estate debt. So providing investors the opportunity to participate in first mortgage-backed loan transactions, that’s our area of speciality. But there’d be others, too. Private equity, hedge funds, etc. But I think the overarching point is that investing has become more sophisticated. There’s more choice for investors, more options. It’s not just about bonds or equities today,” he said.