Metrics launches NZ fund

Metrics Credit Partners has launched a private debt fund for wholesale investors in New Zealand with a target annual return of 3.25% over the RBNZ cash rate.

The Metrics Multi-Strategy Private Debt (NZ) Fund marks the Pinnacle boutique’s first investment product designed specifically for New Zealand investors.

The fund is an open-ended Portfolio Investment Entity (PIE) and offers exposure to a portfolio of directly originated loans to New Zealand and Australian companies, aiming to provide monthly cash income.

Metrics managing partner Andrew Lockhart said fund was sparked by increased demand from New Zealand investors along with the launch of an Auckland office in early 2020.

“Given our commitment to the New Zealand market, we wanted to look for opportunities not only to lend to New Zealand companies but also to create innovative investment products for New Zealand investors,” Lockhart said.

The fund invests in loans to a wide range of borrowers such as including public and private companies, infrastructure providers and project finance groups.

“The fixed income and credit investment choices available for New Zealanders in their local currency have been quite limited, so it is fantastic to provide investors with the option to capitalise on the growing opportunity in the corporate loan market,” Lockhart said.

Metrics plans to launch a similar fund for retail investors in New Zealand later in the year.

In July 2020, Metrics launched the Metrics Direct Income Fund in Australia which acts as a wholesale investor in a sub-trust that invests in other wholesale funds managed by Metrics.

The fund diversifies its lending in Australian corporates by industry sectors (excluding banks), across projects in both public and private sectors.