The private credit fund offers another option to investors looking for material returns above cash
Alternative asset manager La Trobe Financial has announced that it received a “Recommended” rating from Zenith Investment Partners for its La Trobe US Private Credit Fund, which was its inaugural rating from the firm.
“We are delighted to have brought such a unique, high-quality investment strategy to everyday Australian investors,” said La Trobe Financial chief investment officer Chris Paton (pictured). “Providing them with the opportunity to participate in the rebuild of Middle America through an outstanding pipeline of high-quality, non-cyclical assets originated and managed by our program sub-adviser, Morgan Stanley.”
The La Trobe US Private Credit Fund exposes its investors to a diversified portfolio of predominantly US direct senior secured loans as well as access to a deal flow. It focuses on lending to firms that have defensive earnings and a positive free cash flow and offers an option to investors that are looking to have material returns above cash despite limited access to capital.
“This is a strategy which exhibits the hallmarks of our foundational La Trobe Australian Credit Fund: quality of assets, diversification and aims to provide a margin for safety. We are delighted that those qualities have been recognised by Zenith in their comprehensive review of the strategy,” said Paton.
According to Zenith’s report, most of the La Trobe US Private Credit Fund’s loans were backed by PE sponsors with them being “club style” deals that see a group of lenders that provide a lending facility with agreed loan terms and covenants collectively.
“Morgan Stanley is usually the lead manager on the loans it originates. In Zenith's opinion, the origination process is enhanced by the scale of Morgan Stanley's broader business, which spans equity and debt capital markets, investment banking, and wealth management,” Zenith’s report read.
“Through these channels, the direct lending team is able to work directly with leading PE sponsors and corporates, in what is a relationship-led market.”
The La Trobe US Private Credit is available for direct investment for wholesale and retail investors or through their financial advisers or major investment platforms.
