360 Capital Group has announced it has set up the 360 Capital Credit Income Fund which will be listed on the Australian Securities Exchange (ASX) in the second half of 2020.
The new fund, which would be led by the group’s head of private credit Chris Chase and its investment team, would target direct private lending to mid-market Australian and New Zealand corporates.
It would have an exposure to senior secured first lien loans providing capital protection to investors and would seek diversification of exposures through industry allocation. The fund would also target a return of 5% above the RBA Cash rate paid in monthly distributions, the firm said.
The 360 Capital Credit Income Fund would undertake a corner stoning process early 2020 and would be expected to list shortly thereafter with the proposed raising capped at $500 million, with 360 Capital Group contributing $50 million of the cornerstone raising.
“There is a significant market opportunity for domestic private lending being driven by the shifting appetite from banks as a result of increased regulatory oversight, tighter lending standards and the growing market acceptance for alternate financing solutions,” Chase said.
The company said it had a track record in delivering non-bank real estate lending and that it had a strong governance and risk management platform to deliver transaction execution.