Metrics expands private credit range with retail fund
Metrics Credit Partners is expanding its private credit fund range with a managed fund for retail investors.
The Metrics Real Estate Income Fund will be a managed fund offering retail investors access to its existing Real Estate Debt Fund, which is currently open for wholesale investors only.
The Real Estate Debt Fund was launched in 2018 and invests in a portfolio of Australian commercial real estate loans, including in offices, retail, industrial and residential developments.
Andrew Lockhart, managing partner of Metrics, said: “We are in the final stages of bringing the Metrics Real Estate Income Fund to market, which is designed to give retail and private wealth clients access to the Real Estate Debt Fund. This was launched in October 2017 and is $3.7 billion in size and has demonstrated consistent performance.
“We’ve had strong investor interest and inquiries about this fund to bring it to market, so we have taken the decision to launch that very shortly.”
The new fund will be available on platforms and target a return of RBA cash plus 4 per cent per annum.
There has been much talk and speculation about private credit managers as the asset class grows in popularity, with some concerned about fly-by-night managers launching funds with limited knowledge of the space.
Others are concerned about the potential illiquidity risks of holding private credit or the risk of a gated period.
Commenting on these concerns, Lockhart spoke to Metric’s depth of experience over the last 11 years and its track record. The firm is also backed by Pinnacle Investment Management, which took a 35 per cent stake in Metrics back in 2018.
“We think size and scale do matter in this business. It’s about being able to cover the market, having good reach for origination and investment opportunities. That does take a commitment to build long-term relationships with different counterparties,” he said.
“Anyone who invests in private credit where you have a concentrated portfolio of risk does increase their investment risk, so diversification, size, scale, access to the market, the ability to negotiate appropriate terms and conditions, to manage risk and drive return are very important but can also be a great investment if you lower the risk via diversification.
“We have clearly demonstrated over the last 11 years a consistent ability to generate exceptional returns for investors and to manage risk.”
AUTHOR
Laura Dew
Recommended for you
Clime Investment Management has welcomed an independent director to its board, which follows a series of recent appointments at the company.
Ethical investment manager Australian Ethical has cited the ongoing challenging market environment for its modest decrease in assets over the latest quarter.
Commentators have said Australian fund managers are less knowledgeable compared with overseas peers when it comes to expanding their range with ETFs and underestimating the competition from passive strategies.
VanEck is to list two ETFs on the ASX next week, one investing in residential mortgage-backed securities and the other in Indian companies.
