Non-bank lender raising driven by SMSF investors

An Australian non-bank corporate lender has revealed that investments from self-managed super funds have been a major driver behind its capital raising, of which it has received more than $300 million in subscriptions.

Metrics Credit Partners said it’s undertaking the capital raising for its ASX-listed MCP Master Income Trust (ASX: MXT) to generate further funds to meet increasing demand for loans from corporate, project and commercial real estate borrowers.

It noted that its current $638 million entitlement and shortfall offer is being snapped up, with subscriptions of more than $300 million already received from SMSFs, high-net-worth individuals and other investors.

Metrics noted MXT has consistently delivered its investors a net return of 5.45 per cent a year since listing in October 2017.

“Corporate, project and commercial real estate borrowers are increasingly seeing non-bank lenders as an important source of capital, closing the gap left by the banks,” said Metrics managing partner Andrew Lockhart.

“Investors are increasingly recognising this shift in the market and the opportunities it provides them to gain exposure to the private credit market and an investment that is uncorrelated to listed equities or bonds.

“The fund provides an easy way for investors of all types to replace their declining fixed income and term deposit returns with a higher, yet consistent and diversified, source of income.”

Taylor Collison Limited is acting as lead arranger, with other joint lead managers being Morgans Financial Limited, Ord Minnett Limited and Wilsons Corporate Finance Limited.

Bell Potter Securities Limited and Escala Partners Pty Ltd are co-managers, while Pinnacle Investment Management Limited is the distribution partner.

SMSFAdviser Magazine – 25 February 2020