Macquarie Asset Management has entered the fund finance market with a loan of $100 million to an unnamed “flagship fund manager” that makes direct loans in the US.
Macquarie’s loan to the manager comes as it announces entry to the fund finance market by extending its global private credit capabilities into credit portfolio financing.
Macquarie Asset Management is seeking to become a provider of new sources of capital to investment managers active in the fund finance market, which is estimated to be around $US575 billion globally.
The focus is on middle-market corporates to whom the firm will provide levered ‘sleeves’ of private credit funds with an alternative financing solution.
Steve Berry leads the Macquarie team and has more than two decades of experience in structured lending and fund finance. He joined Macquarie Group six years ago and has supported more than €1 billion of fund financing facilities.
Berry, who is head of fund capital in Macquarie AM’s private credit team, said: “As we move into a new macroeconomic regime, we are seeing material change in the dynamics of the credit portfolio financing market. At a time when borrowers are increasingly seeking larger and more bespoke financing solutions to support their fundraising activities, the lending landscape has changed, and this has impacted the terms that are available to them. This is presenting significant opportunities to alternative lenders and I’m excited that we are stepping in with a solution.”
Berry is supported by Roger Fox, who joined Macquarie AM in 2021 from Lloyds Bank where he was a relationship director and has over ten years of experience in corporate lending and fund finance, having previously led the origination and management of over €3 billion of private credit and private equity fund finance transactions.
Kit Hamilton, head of infrastructure and investment grade private credit at Macquarie AM, said: “We are pleased to announce the build-out of our fund finance capabilities with our expansion into credit portfolio financing. This reflects our view that the sector can offer a defensive entry point into middle-market direct lending, diversification and the potential for stable cash flows.”
© 2023 funds europe