Local investment manager Channel Capital announced the launch of Apollo Asset Backed Credit Trust (AUD) on Wednesday - enabling Australian wholesale investors to harness Apollo’s asset-backed finance ecosystem.
The trust provides access to Apollo’s asset backed finance ecosystem - which offers a form of private lending secured by tangible assets like aircraft, property or infrastructure as well as financial receivables like contractual cash flows.
With a focus on directly originated, investment-grade assets, Apollo’s strategy seeks to produce consistent income through exposure to high-quality assets and contracted cash flows. The assets also have structural protections and low historical correlation to traditional corporate credit offerings.
By offering the trust to wholesale investors, Channel Capital will provide all non-investment services, such as responsible entity services, operations, client services, distribution, and marketing.
Edward Moon, partner and head of Asia-Pacific global wealth management at Apollo, said the alternative credit manager sees Australia as a priority market, with an aim to deliver its solutions to local investors, corporates, and retirees.
“Secular changes in financial markets continue to position the asset-backed finance market for future growth, and we believe the strategy offers an attractive value proposition, leveraging Apollo’s differentiated origination capabilities, structuring expertise, and robust risk management framework,” Moon explained.
Moreover, asset-backed finance can complement traditional fixed income allocations for investors seeking consistent returns with enhanced credit protection, according to Channel Capital’s co-head of distribution, Luke Mandekic.
“These strategies are known for their defensive characteristics, often structured with strong collateral protection to reduce default risk and improve recoveries. Asset-backed finance can provide investment-grade equivalent risk with the potential for enhanced yields, and a lower volatility profile,” Mandekic said.
Last year, Channel Capital launched a European private credit fund for Australian wholesale investors. The West Street European Private Credit Fund (AUD) is an open-ended Australian unit trust that accesses Goldman Sachs Asset Management’s European private credit strategy.
It also formed a strategic partnership with boutique absolute return manager Arnott Capital in July 2024 to optimise operational efficiencies and support future expansion.
The asset manager offers tailored investment solutions and provides non-investment services to 18 investment managers in both Australia and across the globe. As of 31 March 2025, it services $57 billion in assets on behalf of these firms.
