La Trobe makes ASX debut with private credit fund | Australian Markets
Leading Australian alts specialist fund supervisor La Trobe Financial has introduced the launch of its anticipated Private Credit Fund, marking its first-ever fund to be made out there to traders on the Australian Securities Exchange (ASX).
The newly launched ‘low-volatility’ fund combines publicity to 2 flagship La Trobe methods: its Australian Real Estate Private Credit fund by way of its 12 Month Term Account, in addition to its US Private Credit Fund, which covers US mid-market company private credit investments.
La Trobe, which boasts Australia’s largest retail credit fund, mentioned its newly launched Private Credit Fund “draws from its respective geographies and sectors to deliver a product offering consistent returns”.
The fund targets a return of 7.10 % every year, with month-to-month distributions of 3.25% every year on high of the benchmark RBA money price (presently at 3.85%), ex-fees. The fund has a minimal investment of $2,000.
La Trobe mentioned it’ll additionally look to prop up efficiency of the fund via common off-market and on-market buy-backs – up to five% of the capital every calendar quarter.
La Trobe Financial chief investment officer (CIO) Chris Paton mentioned the fund, which he notes combines two “best-in-class” methods, offers for traders “conservative and diversified exposure to private credit, with the convenience of investing via the ASX”.
“We are delighted that we can provide our investors with another high-quality product, which we expect will deliver a strong monthly income stream.”
The fund is presently in a cornerstone period, La Trobe notes, indicating a quantity of superior share-buyers within the fund pre-IPO.
An IPO for the fund will search to raise between $100 million and $300 million via the difficulty of items at a subscription price of $2.00.
The fund was delivered to market with a syndicate together with lead arranger CommSec, alongside joint lead managers Taylor Collison, Ord Minnett, Morgan Stanley, and Shaw & Partners.
Existing retail or wholesale traders will probably be eligible for a precedence offer to invest within the fund to be issued on or round 3 June 2025.
La Trobe chief government Chris Andrews hailed the launch of the new fund as a “very significant milestone” for the Melbourne-based fund supervisor, noting it’s the first time its traders are capable of invest with it via the ASX.
“We are listening to our investors and will remain committed to helping Australians by continuing to provide new and thoughtful ways for them to grow their wealth. Today is another step on that journey,” he mentioned.
As at finish of FY24, La Trobe counts more than $20 billion in belongings underneath management and over 110,000 traders and 4,500 supporting advisers.
La Trobe boasts Australia’s largest retail credit fund, with its Australian Credit Fund overseeing more than $13 billion in consumer funds.
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