360 Capital Group has established the 360 Capital Credit Income Fund as the Group's corporate credit fund and intends to list the fund on ASX in the second half of 2020.
The Fund will be led by the Group's Head of Private Credit, Chris Chase and its investment strategy will target direct private lending to mid-market Australian and New Zealand corporates.
The Fund will target a return of 5.00% above the RBA Cash Rate paid in monthly distributions to investors.
"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" says Mr Chase.
The Fund will have exposure predominantly to senior secured 1st lien loans providing capital protection to investors and will seek diversification of exposures through industry allocation.
360 Capital Group has a track record in delivering non-bank real estate lending and has a strong governance and risk management platform to deliver transaction execution. The Group has a strong pipeline of diversified lending opportunities.
The Fund will undertake a corner stoning process early 2020 and will list shortly thereafter with the proposed raising capped at $500 million. 360 Capital Group will contribute $50 million of the cornerstone raising and has commenced building the portfolio of corporate loans.
The Group will maintain a portion of this corner stoning contribution as long- term co-investment in keeping with the Group's philosophy of co-investment in its funds. The Fund is currently engaging with a number of Australian and New Zealand investment banks on the raising and is looking to finalise the banking syndicate in the next few weeks.
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