MA Financial looks to US for private credit distribution
MA Financial believes it is navigating a “clear path to scalable, sustainable growth”, helped by increased demand for private credit where it is looking to boost its US distribution.
The firm recorded 12 per cent growth in assets under management to $10.3 billion in 2024 and saw $2.2 billion in gross inflows into its asset management funds.
Speaking at the firm’s annual general meeting on 29 May, chair Jeffrey Browne said: “We enter 2025 with a strong business platform and a clear path to scalable, sustainable growth over the coming years.”
The flows were driven by strong investor interest in its private credit funds which continued into 2025 with $330 million raised for its listed MA Credit Income Trust.
The fund will provide diversified access to a number of MA Financial’s private credit investment funds in a listed trust and seeks to target a risk-adjusted return of RBA cash rate plus 4.25 per cent per annum over a rolling 12-month period, net of management fees and costs.
“The fund successfully listed on the ASX on 5 March, representing an exciting milestone for the group, further broadening our distribution capability in the Australian market and extending the group’s reputation as a leading private credit asset manager,” said joint chief executive Chris Wyke, who shares the role with Julian Biggins.
It is also focused on growing its US private credit platform where it believes “enormous opportunity” exists and will do so by marketing its private credit funds directly to US investors. Its US fund has already received approval from the regulator and it recently commenced marketing in the country.
Browne said: “In 2025, the focus of our strategic investment will be to grow the US private credit investment business by marketing our funds directly to investors in the United States. This represents an enormous opportunity in the world’s largest specialty credit market, estimated to be worth around US$9 trillion.”
Elsewhere, the higher interest rate environment meant a quieter period for its traditional real estate business, but MA Financial was active with alternative real estate funds with its Hotel, Hotel Accommodation, and Marina funds.
Wyke said: “We can see that the group has made excellent progress in navigating a more challenging set of operating conditions over the last two years, while investing in new business platforms and scaling existing ones.
“This has transitioned to a more consistent, less cyclically dependent, earnings base off which to grow in the years ahead.”
AUTHOR
Laura Dew
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