Bob Sahota
Revolution Asset Management, a leading specialist Australian and New Zealand Private Debt investment manager, is pleased to announce the establishment of the Revolution Private Debt PIE Fund (NZD), opening opportunities for institutional and wholesale investors in New Zealand to participate in its flagship Australian and New Zealand defensive private debt strategy.
The Revolution Private Debt PIE Fund (NZD) is specifically designed to provide New Zealand investors access to private debt investments, focusing on the most compelling relative value loans within the Australian and New Zealand private debt sectors. This includes private corporate loans, real estate debt (no construction or development), and asset backed securities.
The fund adopts an open-ended structure with a semi-liquid feature, fully hedged to New Zealand dollars to manage currency fluctuations. It targets an annual return of the RBNZ Official Cash Rate plus 4% to 5% p.a. (after fees and before tax), primarily through its exposure to the Revolution Private Debt Fund II.
Established in December 2019, the Revolution Private Debt Fund II aims to deliver risk-adjusted returns while prioritising capital preservation. It has consistently outperformed its target return since its inception, with an active net return above the RBA cash rate of 5.15% p.a. as of 29 February 2024.
Chief Investment Officer, Bob Sahota said, “Since the inception of our first fund in 2018, we’ve been actively involved in the New Zealand private debt markets, supporting high-quality businesses with strong market share and stable demand drivers. We’ve also supported asset backed securities alongside well-capitalised consumer finance lenders with conservative lending policies. With growing interest in private debt among New Zealand investors, we’re excited to extend our reach into this market, offering local access to our flagship Australian and New Zealand private debt strategy.”
Mr. Sahota further explained, “We currently have over A$300m invested in New Zealand, which is around 14% of our A$2.2 billion flagship fund. The smaller size of the New Zealand market poses challenges for local investment strategies, mainly due to its focus on volatile sectors such as agriculture and forestry. The fund presents an opportunity for New Zealand investors to balance the need for local support of New Zealand private industry with access to a broader investment universe, more robust deal flow and overall diversification via the Australian private debt markets.”
As at 29 February 2024, Revolution Asset Management has committed capital exceeding A$2.7 billion across its private debt portfolio, sourced from a diverse blend of institutional, family office, and wholesale investors.