For investors seeking regular, stable returns from a lower-risk vehicle
The Moelis Australia Fixed Income Fund (Fund) provides its investors (Investors) exposure to a diversified portfolio of credit investments in a unique fund structure designed to provide stable monthly cash distributions and a strong risk-adjusted return.
The Fund is underpinned by a material co-investment by Moelis Australia, which is used to prioritise Investor returns and significantly reduce Investor risk.
The firm will invest, alongside the Fund, an amount equal to 10% of the Fund’s capital, on terms that provide Fund Investors with the benefit of a capital buffer and income priority.
The terms of Moelis Australia’s co-investment mean:
- Moelis Australia’s capital will first absorb any realised losses, providing a buffer to protect Investor capital (Capital Buffer);
- Investors benefit from prioritisation of income and capital; and
- There is strong alignment of interest between Investors and Moelis Australia.
Moelis Australia will only ever receive a return on its co-investment if Investors have been paid the Target Return and Moelis Australia’s Capital Buffer is equal to 10% of the Fund’s capital.
(currently 5.00%) net of fees