Current Unit Price: (20 min. delayed price) ASX:MXT $2.05 -0.97%
NAV as at COB: 21.03.19 $2.0088

MOT

Introducing MCP Income Opportunities Trust (MOT).
A new ASX-listed investment fund.
MOT gives you access to private transactions, bespoke deals and a regular quarterly target income of 7% p.a. With a possible 1 to 3% extra on top. We’ve got your measure.

OVERVIEW

A new ASX-listed investment fund
Metrics is seeking to list the MCP Income Opportunities Trust delivering a new ASX-traded investment option. The Trust seeks to provide investors exposure to a portfolio of mostly private credit investments. The Investment Objective of the Trust is to provide quarterly cash income, preserve investor capital and manage investment risks seeking to provide potential for upside gains through investments in private credit and other assets such as Warrants, Options, Preference Shares and Equity. *

Attractive target returns
The Trust targets a cash yield of 7% p.a. which is intended to be paid quarterly with a total target return of 8% p.a. to 10% p.a., in each case net of fees and expenses. THIS IS A TARGET AND MAY NOT BE ACHIEVED. *
*Refer to the PDS for full details of the MCP Income Opportunities Trust

Offer close update
The following information is issued by The Trust Company (RE Services) Limited (RE) in its capacity as responsible entity of the MCP Income Opportunities Trust (Trust) in respect of the offer for units in the Trust under the product disclosure statement dated 25 February 2019 as supplemented by the supplementary product disclosure statement dated 13 March 2019:

Due to having received subscriptions for units in the Trust in excess of the Maximum Subscription, the RE has determined to close the Cornerstone Offer, Broker Firm Offer and the General Offer as at 19 March 2019.

The Priority Offer will remain open until 12 April 2019. Applications already received by the RE under the Broker Firm Offer or the General Offer may be scaled back to the extent that further Applications under the Priority Offer (up to a cap of $25 million) are received by 12 April 2019.

MCP INCOME OPPORTUNITIES TRUST

As a respected Australian-based alternative asset management firm specialising in direct lending to Australian companies and an active participant in the Australian Private Credit market, we have significant experience originating, structuring, negotiating, executing, distributing and managing portfolio risk associated with investments in private credit. MOT seeks to offer investors:

  • Quarterly cash income with potential to participate in upside gains
    • The Trust seeks to pay a quarterly cash income distribution of 7% per annum (Target Cash Return)
    • The Trust targets a total net return to investors of between 8% to 10% per annum net of management fees and upfront and ongoing expenses of the Trust (Target Total Return) through the economic cycle. This Total Target Return comprises the Target Cash Return plus potential upside gains generated on assets such as Warrants, Options, Preference Shares and Equity
      The Trust may not be successful in meeting these targets.
  • Access to the Private Credit market and asset class diversification
    • Exposure to a range of borrowers and Private Credit investments that are typically not available to retail investors
    • Privately negotiated and non-traded investments that are structured with a focus on capital preservation and downside capital protection but may provide certain rights to participate in potential upside gains
    • Non-traded private market instruments that typically have Floating Interest Rates (meaning the interest paid goes up and down over time), providing asset class diversification away from publicly listed equities
  • Experienced, credible Investment Team with a proven track record in originating and managing Private Credit investments
    • Metrics comprises a high calibre Investment Team who have on average over 30 years of market experience in direct lending, including Private Credit, supported by a team of investment professionals
    • Our team seeks out proprietary origination opportunities, undertake detailed risk analysis and attends to the legal documentation, execution and ongoing portfolio risk management of Private Credit portfolios. We have an organisational culture that remains focused on risk management and investor capital preservation
  • ASX market liquidity
    • The Trust is expected to be listed on the ASX providing potential liquidity to investors

 

Investment Strategy

The Trust will invest in the following Wholesale Funds managed by Metrics:

  • Metrics Credit Partners Secured Private Debt Fund;
  • MCP Secured Private Debt Fund II;
  • MCP Real Estate Debt Fund; and
  • MCP Credit Trust.

By investing in these Wholesale Funds, The Trust may provide investors with exposure to the full spectrum of Private Credit investments. The Trust will be mostly exposed to Loans, Notes and Bonds, however may also provide investors with the potential for enhanced returns above those generated from the interest paid on Private Credit through exposure to Equity-like investments such as Warrants, Options, Preference Shares or Common Equity as considered appropriate by the Manager according to how it believes the Investment Objective can be best achieved.

KEY OFFER DETAILS

IPO OFFER SIZEA$200 – A$300 million
TARGET RETURN

Cash Return 7.0% p.a. *

Total Return 8.00 – 10.0 % p.a. *

DISTRIBUTION FREQUENCYQuarterly
INDIVIDUAL INVESTMENTSInitial Target – over 30 *
GEOGRAPHIC EXPOSUREMajority Australia, with potential for some investments in New Zealand and developed Asia.
MANAGEMENT COSTS1.49% – 1.45% per annum of the Trust’s NAV, depending on how much is raised under the offer. **
NET ASSET VALUE BACKING PER UNIT AT IPO$2.00

*This is a target only and may not achieved.** The management costs are inclusive of GST and RITCs and is current as at 25 February 2019. Please refer to PDS for full details including the Performance Fee.

KEY DATES

LODGMENT OF PDS WITH ASIC25 February 2019
OFFER OPENS12 March 2019
BROKER FIRM OFFER CLOSES19 March 2019
GENERAL OFFER CLOSES19 March 2019
SETTLEMENT18 April 2019
EXPECTED ALLOTMENT DATE23 April 2019
ASX TRADING COMMENCES29 April 2019
TARGET FIRST DISTRIBUTION DATEWeek following 30 June 2019

*The above timetable is indicative only.

OVERVIEW

A new type of ASX-listed investment fund
Metrics is seeking to list the MCP Income Opportunities Trust delivering a new ASX-traded investment option. The Trust seeks to provide investors exposure to a portfolio of mostly private credit investments. The Investment Objective of the Trust is to provide quarterly cash income, preserve investor capital and manage investment risks seeking to provide potential for upside gains through investments in other assets such as Warrants, Options, Preference Shares and Equity.

Attractive target returns
The Trust targets a cash yield of 7% p.a. which is intended to be paid quarterly with a total target return of 8% p.a. to 10% p.a., in each case net of fees and expenses. THIS IS A TARGET AND MAY NOT BE ACHIEVED.

MCP INCOME OPPORTUNITIES TRUST

As a respected Australian-based alternative asset management firm specialising in direct lending to Australian companies and an active participant in the Australian Private Credit market, we have significant experience originating, structuring, negotiating, executing, distributing and managing portfolio risk associated with investments in private credit. MOT seeks to offer investors:

  • Quarterly cash income with potential to participate in upside gains
    • The Trust seeks to pay a quarterly cash income distribution of 7% per annum (Target Cash Return)
    • The Trust targets a total net return to investors of between 8% to 10% per annum net of management fees and upfront and ongoing expenses of the Trust (Target Total Return) through the economic cycle. This Total Target Return comprises the Target Cash Return plus potential upside gains generated on assets such as Warrants, Options, Preference Shares and Equity
      The Trust may not be successful in meeting these targets.
  • Access to the Private Credit market and asset class diversification
    • Exposure to a range of borrowers and Private Credit investments that are typically not available to retail investors
    • Privately negotiated and non-traded investments that are structured with a focus on capital preservation and downside capital protection but may provide certain rights to participate in potential upside gains
    • Non-traded private market instruments that typically have Floating Interest Rates (meaning the interest paid goes up and down over time), providing asset class diversification away from publicly listed equities
  • Experienced, credible Investment Team with a proven track record in originating and managing Private Credit investments
    • Metrics comprises a high calibre Investment Team who have on average over 30 years of market experience in direct lending, including Private Credit, supported by a team of investment professionals
    • Our team seeks out proprietary origination opportunities, undertake detailed risk analysis and attends to the legal documentation, execution and ongoing portfolio risk management of Private Credit portfolios. We have an organisational culture that remains focused on risk management and investor capital preservation
  • ASX market liquidity
    • The Trust is expected to be listed on the ASX providing potential liquidity to investors

Investment Strategy

The Trust will invest in the following Wholesale Funds managed by Metrics:

  • Metrics Credit Partners Secured Private Debt Fund;
  • MCP Secured Private Debt Fund II;
  • MCP Real Estate Debt Fund; and
  • MCP Credit Trust.

By investing in these Wholesale Funds, The Trust may provide investors with exposure to the full spectrum of Private Credit investments. The Trust will be mostly exposed to Loans, Notes and Bonds, however may also provide investors with the potential for enhanced returns above those generated from the interest paid on Private Credit through exposure to Equity-like investments such as Warrants, Options, Preference Shares or Common Equity as considered appropriate by the Manager according to how it believes the Investment Objective can be best achieved.

KEY OFFER DETAILS

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IPO OFFER SIZEA$200 – A$300 million
TARGET RETURN

Cash Return 7.0% p.a. *

Total Return 8.00 – 10.0 % p.a. *

DISTRIBUTION FREQUENCYQuarterly
INDIVIDUAL INVESTMENTSInitial Target – over 30 *
GEOGRAPHIC EXPOSUREMajority Australia, with potential for some investments in New Zealand and developed Asia.
NET ASSET VALUE BACKING PER UNIT AT IPO$2.00

*This is a target only and may not achieved.

KEY DATES

LODGMENT OF PDS WITH ASIC25 February 2019
OFFER OPENS12 March 2019
BROKER FIRM OFFER CLOSES5 April 2019
GENERAL OFFER CLOSES12 April 2019
SETTLEMENT18 April 2019
EXPECTED ALLOTMENT DATE23 April 2019
ASX TRADING COMMENCES29 APRIL 2019
TARGET FIRST DISTRIBUTION DATEWeek following 30 June 2019

*The above timetable is indicative only.

Unlisted funds

Launched in 2013, the Metrics Credit Partners Diversified Australian Senior Loan Fund is an open-ended unit trust. It invests in a diversified portfolio of primarily Australian corporate loans and other associated debt instruments, designed to broadly reflect the corporate loan market.

The fund offers investors direct exposure to Australia’s bank dominated corporate loan market by investing in bilateral, club-style, and syndicated loans to Australian public and private companies.

The fund is an open-ended unlisted trust and is open to accept applications from wholesale investors.

Launched in 2015, the Metrics Credit Partners Secured Private Debt Fund invests in a portfolio of bilateral, club-style and syndicated loans, predominantly to sub investment grade mid-market Australian corporate borrowers across industries. The fund offers investors direct exposure to Australia’s bank-dominated mid-market corporate loan market by investing in loans to private corporates, private-equity sponsored, real estate and structured finance borrowers.

The fund is closed-ended and no longer open to new applications.

The MCP Secured Private Debt Fund II was launched in 2017 and invests in a portfolio of bilateral, club-style and syndicated loans, predominantly to sub investment grade mid-market Australian corporate borrowers across industries. The fund offers investors direct exposure to Australia’s bank-dominated mid-market corporate loan market by investing in loans to private corporates, private-equity sponsored, real estate and structured finance borrowers.

The fund is an open-ended unlisted trust and is open to accept applications from wholesale investors.

The MCP Real Estate Debt Fund was launched in 2017 and invests in a portfolio of Australian Commercial Real Estate (“CRE”) loans. The fund offers investors direct exposure to Australia’s bank dominated CRE loan market by investing in loans to Australian CRE borrowers. These include office, retail, industrial, residential development, and specialised real estate assets such as hotels and healthcare.

The fund is an open-ended unlisted trust and is open to accept applications from wholesale investors.

The MCP Wholesale Investments Trust was launched in [February] 2019 and offers investors exposure to the private debt market sourcing opportunities across Australia, New Zealand and developed Asia., The fund will invest in and alongside Metrics Credit Partners Secured Private Debt Fund, the MCP Secured Private Debt Fund II, the MCP Real Estate Debt Fund and the MCP Credit Trust.

The fund is an open-ended unlisted trust and is open to accept applications from wholesale investors.

The MCP Credit Trust was launched in 2018 and seeks to build an actively managed portfolio aiming to provide attractive risk-adjusted returns through investments mostly in Private Credit while retaining a focus on capitol stability, active risk management and downside capital preservation. The fund is an open-ended unlisted trust and is open to accept applications from wholesale investors.

The MCP Wholesale Investment Trust was launched in 2017 and offers investors direct exposure to the Australian corporate loan market – a space dominated by regulated banks and largely inaccessible to non-bank investors. The trust invests in and alongside Metrics Credit Partners Diversified Australian Senior Loan Fund, MCP Real Estate Debt Fund and MCP Secured Private Debt Fund II.
Current Unit Price: (20 min. delayed price) ASX:MXT $2.05 -0.97%
NAV as at COB: 21.03.19 $2.0088

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Disclaimer and disclosure

All website content in respect of the MCP Master Income Trust ARSN 620 465 090 (the Trust) is issued by The Trust Company (RE Services) Limited ABN 45 003 278 831 AFSL 235 150 (Perpetual) as responsible entity of the Trust and is prepared by Metrics Credit Partners Pty Ltd ABN 27 150 646 996 AFSL 416 146 (Metrics) as the investment manager of the Trust.

The information provided in this website is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision in respect of the Trust, you should consider the current product disclosure statement (PDS) of the Trust and the Trust’s other periodic and continuous disclosure announcements lodged with the ASX, which are available at www.asx.com.au/, and assess whether the Trust is appropriate given your objectives, financial situation or needs. If you require advice that takes into account your personal circumstances, you should consult a licensed or authorised financial adviser.

Neither Perpetual nor Metrics guarantees repayment of capital or any particular rate of return from the Trust. Neither Perpetual nor Metrics gives any representation or warranty as to the currency, reliability, completeness or accuracy of the information contained in this website. All opinions and estimates included in this website constitute judgments of Metrics as at the date of website creation and are subject to change without notice. Past performance is not a reliable indicator of future performance.

Cororate Governance
Personal Trading in Non-Perpetual Securities | RE Services Personal Trading in Non-Perpetual Securities | Unitholders Communications Policy | Continuous Disclosure Policy

Disclaimer and disclosure

All website content in respect of the MCP Income Opportunities Trust ARSN 631 320 628 (the Trust) is issued by The Trust Company (RE Services) Limited ABN 45 003 278 831 AFSL 235 150 (Perpetual) as responsible entity of the Trust and is prepared by Metrics Credit Partners Pty Ltd ABN 27 150 646 996 AFSL 416 146 (Metrics) as the investment manager of the Trust.

The information provided in this website is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision in respect of the Trust, you should consider the current product disclosure statement (PDS) of the Trust, which is available and can be obtained from this website, and the Trust’s other periodic and continuous disclosure announcements lodged with the ASX, which are available at www.asx.com.au, and assess whether the Trust is appropriate given your objectives, financial situation or needs. If you require advice that takes into account your personal circumstances, you should consult a licensed or authorised financial adviser.

Neither Perpetual nor Metrics guarantees repayment of capital or any particular rate of return from the Trust. Neither Perpetual nor Metrics gives any representation or warranty as to the currency, reliability, completeness or accuracy of the information contained in this website. All opinions and estimates included in this website constitute judgments of Metrics as at the date of website creation and are subject to change without notice. Past performance is not a reliable indicator of future performance.

Cororate Governance
Personal Trading in Non-Perpetual Securities | RE Services Personal Trading in Non-Perpetual Securities | Unitholders Communications Policy | Continuous Disclosure Policy

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