The Asset Management team has deep experience in providing credit to borrowers and structuring transactions in a range of asset classes and economic conditions.
In addition to a specialty in providing credit to borrowers, our Asset Management team have a broad background in real estate include valuation, construction, financing, operating and asset management helping provide us with a differentiated approach to structuring our credit product.
Our Asset Management team is also complemented by an experienced debt advisory team within Corporate Advisory who have managed some of the most complex restructuring and debt transactions in Australia. Drawing upon the diversified experience in credit across the firm provides the investment team a deep, holistic views at credit opportunities.
The team has extensive experience in providing credit to borrowers and structuring transactions across a range of asset classes and economic conditions. The key investment philosophy is the identification of assets which provide capital protection for our investors through the structure of the investment and access to security. When managing a pool of credit assets, we structure the portfolio and continue to review the diversification of the portfolio. We also target regular income streams for our investors.
Partnering with global partners
A US institutional investor was keen to gain exposure to the Australian credit markets and chose Moelis Australia as their local partner. Our Asset Management team sourced and structured two construction loan opportunities that matched our investor’s risk/return profile.
Both loans are currently performing in line with forecasts.
As well as managing the loans and overseeing the construction development on their behalf, Moelis Australia also co-invests with the US institutional investor.
Identifying investment opportunity
With traditional lenders tightening their lending criteria, our Asset Management team saw an opportunity for alternative credit providers to fill the funding gap for borrowers and established the first of our mortgage backed funds – the Senior Secured Loan Fund in 2017.
We have since created a new open-ended fund following the same investment principles. The fund provides short tenor (less than 12 months) loan facilities which are secured against the borrower’s real estate asset/s. The average loan to value ratio for assets in the portfolio is 59.4%1.
The open-ended fund portfolio now comprises of Funds under management in excess of $200m1 and has generated a net post fee return to investors 7.5 – 8.0% pa.
1. June 2019