La Trobe's US private credit trust launches

With an initial investment of $130m

La Trobe's US private credit trust launches


By Mina Martin

La Trobe Financial has successfully completed its $130 million fundraising campaign for the La Trobe US Private Credit Trust, marking the debut of the Global Asset Series.

The initial investment, placed on Dec. 1, follows an extensive national roadshow, where La Trobe Financial CIO Chris Paton (pictured above), alongside three members of the Morgan Stanley Private Credit investment committee, hosted over 30 sessions for financial advisers and wholesale investors.

“The launch of the La Trobe US Private Credit strategy and its successful initial investment demonstrates the importance of offering to the Australian market unique investment strategies which deliver attractive risk-adjusted returns,” Paton said in a media release.

“As investors continue to deal with volatility in markets, the ability to access products backed by defensive, diversified portfolios of high-quality assets can make a meaningful difference to investment portfolios.”

The La Trobe US Private Credit product, available for wholesale investors through direct investment or platform, aims to deliver an annualised distribution yield of at least 9% per annum net of fees, with monthly distributions.

The product is backed by a defensive portfolio of directly originated, senior secured loan assets issued to US middle-market companies, owned by some of the world's largest private equity firms.

La Trobe said the launch of its global asset management strategy marks an important milestone for the company, solidifying its position as Australia's flagship alternative asset manager.

“We are excited that we can bring a unique strategy to market alongside one of the world’s largest financial institutions in Morgan Stanley and look forward to introducing further strategies to market in the near future,” Paton said.

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