Channel Capital launches Apollo Asset Backed Credit Trust

Edward Moon

Channel Capital, a leading Australian multi-partner asset management firm, has launched the Apollo Asset Backed Credit Trust (AUD) for Australian wholesale investors. The trust is an open-end Australian unit trust that provides access to Apollo’s (NYSE: APO) Asset Backed Finance strategy.

Asset backed financing offers a form of private lending secured by tangible assets like aircraft, property or infrastructure as well as financial receivables like contractual cash flows. Apollo’s asset backed finance strategy primarily focuses on directly originated, investment-grade assets across a diverse range of sectors. It seeks to generate consistent income through exposure to high-quality assets and contracted cash flows, with structural protections and low historical correlation to traditional corporate credit offerings.

Edward Moon, Partner and Head of Asia Pacific Global Wealth Management at Apollo, commented: “We are pleased to work with the Channel Capital team to expand access to Apollo’s asset backed finance strategy in Australia, a priority market for Apollo where we are focused on meeting the evolving needs of Australian investors, corporates and retirees through creative capital solutions and customised products. Secular changes in financial markets continue to position the asset backed finance market for future growth, and we believe the strategy offers an attractive value proposition, leveraging Apollo’s differentiated origination capabilities, structuring expertise and robust risk management framework.”

Luke Mandekic, Co-Head of Distribution at Channel Capital, added: “For investors seeking consistent returns with enhanced credit protection, asset backed finance can offer a valuable complement to traditional fixed income allocations. These strategies are known for their defensive characteristics, often structured with strong collateral protection to reduce default risk and improve recoveries. Asset backed finance can provide investment-grade equivalent risk with the potential for enhanced yields, and a lower volatility profile.”

Channel Capital offers the trust and will provide all non-investment services, including responsible entity services, operations, client services, and distribution and marketing.

The trust offers monthly applications and redemptions, has been independently rated “Recommended” by Zenith Investment Partners, and is expected to be widely available across major investment platforms.