EG has announced a joint venture with Msquared Capital to offer investors the opportunity to diversify into the private debt market to service capital products for quality residential real estate and industrial sites across the eastern seaboard of Australia.
The new venture will initially engage wholesale investors and family offices, with private debt secured by quality real estate. A significant component of the joint venture is EG’s proprietary platform PRISMS, which will assist the team in applying an equity and debt lens on each prospective loan. The platform’s unique data, collected for more than 20 years, will also ensure that risks and credit quality are thoroughly assessed to safeguard investor funds.
The debt market has historically been tightly held by major banks, but it is increasingly becoming prevalent for borrowers to access credit through non-bank lenders due to the traditional lenders placing strict criteria on capital products. These restrictions have become more rigorous during the volatile market, which leaves borrowers and mortgage brokers turning to alternative lenders for funds.
Rodney Walt, Head of Private Wealth, EG said “EG constantly explores new opportunities to uncover great returns for our investors within the real estate market during a variety of market conditions. After extensive consultation, we are confident that Msquared Capital is the right cultural fit for a joint venture due to our aligned core values that will help solidify a strong partnership that generates outstanding consistent returns and positive impact.
As lending declines from the major banks, we have recognised a funding gap within the market. That’s why private debt has been viewed as the ideal opportunity for our investors. The joint venture supports an underserved market, with capital secured by quality real estate in Australia to further enhance returns for our investors.”
Paul Miron, Managing Director, Msquared Capital, said: “The appetite for private debt has skyrocketed over the past few years, with no signs of slowing. This joint venture with EG enables us to capitalise on this growing demand, working together to provide more opportunities for both borrowers and investors. Against a backdrop of market volatility, investors seek opportunities to diversify and secure strong returns, and private credit backed by property offers great appeal.”
Founded in 2000, EG has $5.1 billion under management on behalf of institutional investors and wholesale clients to generate outstanding returns with lasting social impact. With $3.9 billion in the development pipeline and 16.7% per annum in realised IRR for institutional funds, EG is committed to finding a better path to better returns.
Msquared Capital is a private credit provider founded in 2017, offering investment opportunities backed by quality property along the eastern seaboard of Australia. Operating three funds; High Yield, Contributory and the Conservative Fund, which has received an Evergreen rating, Msquared Capital offers strong risk-mitigated returns of up to 9 per cent. With the combined experience of the directors and leadership team of 100 years in banking, finance, property and funds management.