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Fund Highlights
Designed to deliver attractive income with enhanced liquidity.
The Privity Diversified Credit Fund is focused on producing consistent, uncorrelated income through direct lending to corporates and pools of asset backed securities with additional liquidity benefits.
We do this via a portfolio of well-diversified, appropriately geared and robustly structured direct corporate loans and pools of asset backed securities (ABS) with a small allocation to daily priced, listed credit. The majority of the portfolio is originated by our team allowing us to select, sift and structure strong return-generating loans. The Fund also has a minority allocation to syndicated loans and secondary ABS exposures to take advantage of market depth and occasional mispricing. The listed credit allocation is managed by leading fixed income managers Janus Henderson and Perpetual.
The Privity Diversified Credit Fund’s target return is RBA cash rate +4% (net) p.a.
Proven investment approach.
Privity’s track record of generating above target returns with capital preservation for investors since 2013.
Experienced investment team.
Successful through-the-cycle lending experience in Australia and globally.
Focus on regular income.
The Fund offers monthly cash distributions and targets a total return of RBA Cash Rate +4% (net) p.a.
Liquidity features.
Purpose built liquidity through secondary private market investments and daily priced listed credit.
Signing the loan agreement is not the end of the story, it’s the beginning.
We take an active approach to managing our loans. This includes:
Monthly monitoring
Monthly monitoring of clients giving us real-time insights on borrower’s financial health.
Board observer rights
Board observer rights where we can gain visibility around decision-making.
Living and breathing documentation
Living and breathing documentation that can change to better cover loan terms and covenants as the borrower’s business evolves.
Hands-on support
Hands-on support for our borrowers because the right advice provided early is invaluable.
Dynamic pricing-to-risk
Dynamic pricing-to-risk allows us to adjust the pricing, terms, and structure of the loan to reflect the evolving needs of the business.
Alignment between borrowers and investors
Alignment between borrowers and investors so all stakeholders’ interests are prioritised.
Credit involves natural tension – investors seek strong returns and strict terms, while borrowers aim for flexibility and affordability. We align their interests, creating satisfied investors and empowering businesses to thrive.
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Investment Strategy
Secured loans for corporate borrowers, pools of asset backed securities and listed credit
The Privity Diversified Credit Fund provides direct medium‐term secured and asset backed loans to corporate borrowers in Australia and New Zealand, with a small allocation to listed credit to support investors’ needs for liquidity.
Selection is based on activity in the private credit market underpinned by the individual strength of each opportunity, whilst focusing on the diversity of borrowers, industries and asset classes. The loans are typically for 2-3 years, highly structured with a comprehensive set of financial covenants, regular financial and business KPI reporting, robust security packages and bank-standard documentation (APLMA). We continually monitor our loans through active portfolio management which includes monthly monitoring, board observer rights and hands-on support for our borrowers.
The majority of the Fund’s assets are originated by the Privity team with a minor allocation to syndicated corporate loans and asset backed securities carefully selected from the secondary market. This minority allocation has semi-liquid characteristics and contributes to the portfolio’s diversification and liquidity profile.
The listed credit assets are managed independently by leading Fixed Income managers Janus Henderson and Perpetual through an actively managed portfolio offering diversified exposure, daily pricing and monthly redemptions to the Privity funds.
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Investment Objectives
The Fund’s objective is to deliver consistent returns targeting RBA cash rate +4% (net) with enhanced monthly liquidity and inbuilt defensive characteristics.
The Fund aims to provide repeatable monthly income returns through the economic cycle with monthly liquidity. We aim to mitigate the possibility of capital loss via investment in a diversified portfolio of credit exposures in the Australian and New Zealand market. Diversification is across industries, borrower types, loan maturities and loan structures. Notably, there is no allocation to property development and construction.
Private credit allocations are restricted to direct corporate lending and asset backed securities, predominately originated by Privity Credit and supplemented with exposures transacted in secondary markets and the listed credit market.
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Fund Facts
Fund Details
The Privity Diversified Credit Fund is designed to provide wholesale clients with compelling investment opportunities in corporate and asset backed loans across Australia and New Zealand.
RBA rate* +
4
%
Total target return (net)
*RBA cash rate
Over a rolling period of 3 years net of fees.
50
+
DIRECT LENDING TARGET POSITIONS
200
K+
ASSET BACKED SECURITIES TARGET POSITIONS
0
+
ALLOCATION TO PROPERTY DEVELOPMENT
| Distribution | Monthly |
| Liquidity | Monthly, capped at 5% of NAV per month |
| Minimum Investment | A$50,000 |
| Platform availability | Coming soon |
| Management fee | 1.10% p.a. of NAV |
| Performance Fee | 15% p.a. of any Fund return in excess of RBA cash rate +3% (net) return hurdle. |
All fees are stated inclusive of GST and RITC.
Access our detailed Fund Fact Sheet
Get in-depth insights with our comprehensive Fund Fact Sheet.
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Make an investment
Make an investment with Privity Credit
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Investor Access
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