Metrics Credit Partners expands with NZ office
Australia’s leading non-bank lender Metrics Credit Partners (Metrics) has announced the opening of a new office in New Zealand.
The opening is in response to increasing Kiwi demand for better returns from fixed income, given record low local interest rates.
The office in Auckland will be staffed by three local financial experts – see separate release.
Returns on term deposits and savings accounts have slumped to all-time lows, notes Andrew Lockhart, Managing Partner of Metrics.
“Successive rate cuts mean some local investors are currently receiving returns that are below the official RBNZ rate of inflation of 1.9% – losing money on every dollar they have invested in cash. We are therefore seeing high demand for alternative sources of return,” he said.
Mr Lockhart suggested investors do what the big banks do – move slightly up the yield curve to corporate loans, which offer higher rates of return than home loans, for similar security.
Metrics, formed by ex-National Australia Bank bankers over seven years ago, provides loans to Australian and New Zealand corporations and property institutions to generate returns of between 4 – 10% year.
It bundles these loans into listed and unlisted funds, to provide diversification of up to 100 loans, for greater capital stability. Loans are secured by similar protection to that required by the banks.
Mr Lockhart said corporate loans had a low correlation to other major asset classes, including equities and government bonds, providing excellent diversification opportunities.
“Adding a New Zealand office was a strategic move for us and a sensible one as we build on our capabilities as a leading non-bank corporate credit provider. We continue to grow and originate attractive investment opportunities for our investor clients,” he said.
Metrics Credit Partners appoints New Zealand team
Australasia’s leading non-bank corporate lender Metrics Credit Partners (Metrics) has announced three new appointments to its New Zealand team, following its launch into the NZ market.
Metrics Managing Partner Andrew Lockhart said there were increasing opportunities for non-bank lenders as well as local investors in New Zealand.
Mr Lockhart welcomed Wayne Skerten, Richard Mandeno and Devna Bilimoria to the Metrics office in Auckland. “Each has a depth of experience and expertise in corporate lending and finance that will benefit our local partners and investors,” he said.
Both Wayne Skerten and Richard Mandeno join as Investment Directors, with almost 35 years of combined experience in the financial services sector across Australia, the UK and NZ.
Mr Skerten has had over 20 years of experience in private equity and leverage finance. He was previously Executive Manager at ASB Bank. He has also worked as a Director at ANZ Capital and an analyst at PwC.
Mr Mandeno was previously Client Director, Corporate Banking at ASB Bank. The ASB Group is one of the largest providers of financial and insurance services in New Zealand, with ASB Bank one of the country’s leading commercial banks.
Devna Bilimoria joins Metrics as an Investment Associate and brings a deep understanding of corporate debt and financial transactions. She was previously Manager, Capital Solutions at ASB Bank.
Metrics has experienced continued growth since launching in 2013, having lent in excess of $8 billion across over 300 lending transactions to date.
“As we move into the New Zealand market, we aim to assist companies with non-bank capital as an important and diversified source of funding,” Mr Lockhart said.
Metrics will continue to provide increasingly attractive opportunities for investors in the current low rate environment.
Mr Lockhart said: “Banks have slashed interest from cash accounts, term deposits and savings accounts and in bond markets, investors are paying higher prices for declining yields.
“We are seeing increased interest in corporate loans because, by moving just slightly along the risk curve from term deposits and traditional bonds, investors can obtain reliable returns of 4-10% for their portfolios,” he concluded.
The trio will start in March.
AdviserVoice – February 17, 2020
Andrew Lockhart, Managing Partner at Metrics Credit Partners, provided insights into the opportunity and outlook for Australian private debt in…