Grant Atchison

Alceon, a financier and multi-strategy alternative investment manager, has received a sought after 4.00-star rating from SQM Research for its retail private debt fund, the Alceon Debt Income Fund.

The fund holds a portfolio of loans primarily secured by registered first ranking mortgages held over Australian property, mostly on the east coast of Australia. The loans finance a mix of real estate development, construction and ownership. The fund only invests in secured senior and second ranking loans with a maximum loan-to-valuation ratio (LVR) of 65 per cent.

Alceon Group is a leading non-bank financier with a loan portfolio of $2 billion at 30 June 2022. The Alceon Debt Income Fund which doubled in size over FY22 co-invests alongside Alceon’s High-Net-Worth, family office and institutional clients in the underlying loan portfolio.

Alceon launched the fund to allow advisers with retail clients to diversify their credit exposure with a conservatively positioned portfolio of private debt secured by real estate that paid monthly distributions and could be accessed via retail platforms.

The fund seeks to generate attractive yields of 5% – 7% p.a. and has generated and net return of 8.18% p.a. since inception to 31 July 2022.

Grant Atchison, Head of Real Estate Funds Management at Alceon said: “The Alceon Debt Income Fund differentiates from others in the segment by offering an institutional grade fund with a core focus on short duration, secured real estate debt.”

SQM Research notes: “The Alceon Group has more than a 10-year track record in the Real Estate/Investments industry and has about $4.3 billion in FUM and about 65 staff members. The Firm has a well-resourced and highly experienced investment team.”

“The investment/lending process is thorough and robust. Significant due diligence on investments is undertaken, with independent property and construction industry experts engaged along the investment pipeline. A series of monitoring protocols are in place to mitigate default risk.”

Atchison added: “Alceon and market commentators estimate that non-bank lending in the Australian residential real estate and construction market is between $20 billion and $50 billion. The fund allows advisers to access this growing institutional asset class that benefits investor portfolios with regular distributions and downside protection during volatile periods” .

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