MCP seeks to raise $303m for flagship fund
Metrics Credit Partners (MCP), a specialist debt funds with $2.7 billion in funds under management (FUM), has announced it is seeking to raise $303 million through the offer of new units in its ASX-listed corporate loan fund, the MCP Master Income Trust (MXT).
Under the offer, existing unitholders would be able to take up one new unit for each 1.7 units they held as at the record date of 1 March, at the offer price of $2 per unit, the firm said.
MXT targeted a return of the RBA cash rate plus 3.25 per cent net of fees, through active loan management strategies, with cash distributions being paid monthly.
MCP’s managing director, Andrew Lockhart said that the additional capital would give it scale, help reduce unitholder costs and increase liquidity available on the ASX.
“MXT has established a strong platform in a short space of time. We’re delighted to give our unitholders the ability to participate in this raising, which will position us to continue to deliver stable monthly income with low risk of capital loss,” he said.
According to MCP, Australian corporate loans offered investors a floating interest rate and protections such as covenants and security, which supported low losses and stable capital values.
Grant Samuel was a financial adviser to the trust, with Minter + Ellison acting as legal adviser, Commonwealth Securities acting as lead arranger and JLM, along with Morgans Financial, Ord Minnett and Wilsons Corporate Finance working as arrangers.
Pinnacle Investments was appointed as a distribution partner.
Recommended for you
Almost 70 per cent of asset managers are planning to control costs via product rationalisation, according to a global survey by Northern Trust, as they seek to offer clients a best-in-class experience.
Fund managers should work collaboratively with data providers to minimise greenwashing risks in their products as a positive ESG score can be a “gamechanger” for a fund’s demand with advisers.
Asset manager Janus Henderson has made two acquisitions in the ETFs and emerging markets space as it takes strategic steps to meet client needs.
Self-reporting issues to ASIC could lead to a reduced charge for a fund manager but it may not exempt them from enforcement action altogether, according to ASIC chair Joe Longo.
