London, 13 November 2023
Macquarie Asset Management has today announced it will extend its global private credit capabilities with an expansion into credit portfolio financing.
Macquarie Asset Management will seek to provide new sources of capital to investment managers active in the fund finance market that is estimated be at least $US575 billion globally.1 The asset manager will aim to secure diversified and low risk exposures to middle-market corporates by providing the levered sleeves of private credit funds with an alternative financing solution.
Macquarie Asset Management has already made its first investment in the sector, investing $US100 million in a loan to the flagship fund of a major US direct lending manager. The investment provides leverage for a broadly diversified portfolio of middle-market corporate loans.
Kit Hamilton, Head of Infrastructure and Investment Grade Private Credit at Macquarie Asset Management, said: “We are pleased to announce the build out of our fund finance capabilities with our expansion into credit portfolio financing. This reflects our view that the sector can offer a defensive entry point into middle-market direct lending, diversification and the potential for stable cash flows.”
Steve Berry, Head of Fund Capital in Macquarie Asset Management’s Private Credit team, said: “As we move into a new macroeconomic regime, we are seeing material change in the dynamics of the credit portfolio financing market. At a time when borrowers are increasingly seeking larger and more bespoke financing solutions to support their fundraising activities, the lending landscape has changed, and this has impacted the terms that are available to them. This is presenting significant opportunities to alternative lenders and I’m excited that we are stepping in with a solution.”
Macquarie Asset Management’s expansion into credit portfolio financing is being led by Steve Berry and supported by Roger Fox. Steve has more than two decades of experience in structured lending and fund finance, and since joining Macquarie Group six-years ago he has supported more than €1 billion of fund financing facilities. Roger joined Macquarie Asset Management in 2021 from Lloyds Bank where he was a relationship director. Roger has over 10 years of experience in corporate lending and fund finance, having previously led the origination and management of over €3 billion of private credit and private equity fund finance transactions.
Macquarie Asset Management’s private credit platform provides private credit and credit-like solutions across infrastructure, fund capital, real estate, private placements and asset finance.