Betashares launches inaugural private markets offering

Investment provider Betashares has launched its first offering from its newly established private capital division, delivering institutional-grade private credit exposure for financial advisers and wholesale investors.

The Betashares Capital Cliffwater Private Credit Fund is an unlisted fund offering a highly diversified portfolio of secured, floating-rate loans to predominantly US middle-market companies, investing in a fund managed by Cliffwater LLC, a private markets asset manager.

Namely, the underlying fund invests in loans sourced through the Cliffwater Corporate Lending Fund platform, which currently holds exposure to some 3,800 individual loans across healthcare, industrials, IT and financials.

According to the firm, the new fund has a projected 12-month distribution yield of 8–9 per cent per annum and is currency hedged to Australian dollars, offering advisers and investors an opportunity for attractive quarterly income. 

Built with the aim of delivering competitive, transparent access to a traditionally out of reach asset class for non-institutional investors, the fund offers greater access to wholesale and advised investors with cost-effective management fees and daily applications.

Marking the first offering under the firm’s new private capital division, it said this is a “meaningful milestone in Betashares’ mission to help Australians achieve their financial goals by offering access to intelligent, institutional-grade investment opportunities”.

Speaking on the launch, Betashares founder and chief executive Alex Vynokur said this is the next step in the firm’s ongoing commitment to deliver high-quality investment offerings that meet the needs of clients in building a diversified portfolio.

“In service of this mission, our new US private credit exposure, delivered in partnership with Cliffwater, demonstrates our intent to selectively partner with best-in-class private asset managers to deliver institutional-grade investment solutions to eligible Australian investors and their financial advisers.

“Cliffwater’s unique multilender investment strategy has a very compelling track record. We’re proud to be partnering with a high-quality asset manager to unlock a diversified pathway into US private credit for Australian investors.”

Vynokur added: “By enabling responsible access to a high-quality private credit exposure, investors and their financial advisers have the opportunity to earn compelling risk adjusted returns. Over time, we’re looking forward to building on our private assets offering to offer more institutional grade investment solutions in areas where Australian investors have been traditionally underserved.”