The Credit Opportunities Fund (“COF” or “the Fund”) was launched in October 2014 as a portfolio investor in equipment and trade receivables. As FCFM sees greater opportunity for investors in a broader range of actively managed Australasian corporate credit assets, the Fund will re-launch in mid 2018. Targeting opportunities with Australasian mid-market companies, COF will offer a range of yield-driven products to borrowers across a broad range of industry sectors.
Alternative credit (also known as “private debt”) is a well-known alternative asset around the globe and constitutes ~8-9% of all alternatives in a well-diversified investment portfolio. In Australia such assets have been difficult to source by investors due to the stranglehold held by the major banks on company lending. The Manager has identified niches in this market where good quality corporate borrowers are under-served by the banking community and strong returns are available for intelligent investment.
On offer to wholesale and professional investors is an attractive monthly cash yield, combined with annual payment of excess returns. FCFM seeks a first close of its open-ended Fund at a target capital raise of A$50million.