The PDI Global Awards celebrate excellence in the private debt industry, recognising outstanding achievements across Asia-Pacific, Europe and the Americas. These awards consider both qualitative and quantitative criteria, including innovation, deal size, and strategic significance.

Andrew Lockhart, Managing Partner at Metrics Credit Partners, said, “Receiving this PDI Global Award is a testament to the efforts and commitment of our team, and we are honoured by this recognition.”

This win reinforces Metrics’ position as a leading Australian-based alternative asset manager. Metrics has an experienced team of over 160 investment professionals with current assets under management of approximately $23 billion.

Mr. Lockhart concluded, “Our significant investments in the commercial real estate sector, position us as a leading private credit investor across the Asia-Pacific region, providing unparalleled access to investment opportunities. At Metrics, we are entirely focused on providing a high level of service to our clients. We are a reliable and consistent partner providing access to non-bank finance for our borrower clients and ensuring we carefully manage risk and deliver great investment outcomes for our investors. We thank our clients for the opportunity to assist.”

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Andrew Lockhart

Metrics Credit Partners (Metrics), a leading Australian asset manager with approximately $20 billion funds under management, has launched an initial public offer (IPO) for stapled units in the Metrics Real Estate Multi-Strategy Fund (ASX:MRE). The Fund provides investors with an opportunity to invest via a stapled security structure consisting of the Metrics Real Estate Multi-Strategy Passive Trust (Passive Trust) and Metrics Real Estate Multi-Strategy Active Trust (Active Trust) (Fund).

Both Trusts are registered with ASIC and are proposed to be jointly quoted on the ASX as stapled securities on 16 October 2024.  An interest in the Fund consists of one unit in the Active Trust and one unit in the Passive Trust (Unit Set).

Zenith Investment Partners^[1] and Lonsec Research^[2] have both initiated research coverage and given the Fund a ‘Recommended’ rating.

The Fund provides investors with the opportunity to obtain broad exposure to commercial real estate (CRE) investments. It targets a total return of 10.00%-12.00% p.a. net of all costs through the economic cycle (Total Target Return)[3].

The Fund’s investment objective[4] is to provide investors with exposure to a diversified portfolio of private markets CRE investments covering the entire capital structure from lower risk senior secured first registered mortgage debt through to higher risk and potentially higher returning equity investments and seeks to preserve investor capital, manage investment risks and deliver on the Target Total Return.

The IPO issue price for subscriptions is A$2.00 per Unit Set to raise a target amount of A$300 million with the ability to accept oversubscriptions. The minimum investment is $2,000 and the offer closes at 5:00pm on 25 September 2024.

Metrics Managing Partner, Andrew Lockhart said, “Metrics is pleased to launch the Metrics Real Estate Multi-Strategy Fund. This will be our third listed fund open to investors on the ASX. The Fund offers the opportunity to obtain broad exposure to both private CRE debt and private CRE equity investments which are not typically available to investors. The Fund offers immediate deployment of the funds raised from the Offer in existing investments portfolios managed by Metrics.

“Metrics manages funds which invest across all real estate asset classes with investment assets directly originated, negotiated, structured and executed through the extensive proprietary relationships and expertise of the Metrics team. As one of the largest private credit investors in the Australian real estate sector, Metrics leverages its market position to originate high quality investment opportunities covering all parts of the capital structure (senior, mezzanine debt, preferred equity and equity).

Mr Lockhart added, “The Metrics Real Estate Multi-Strategy Fund offers investors the potential to earn income from CRE debt investments and potential income and equity upside from CRE co-investment assets, which are not typically available to them.”

Metrics has an experienced team of over 150 investment professionals with current CRE debt assets under management of approximately $11 billion.

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Kivanch Mehmet

Metrics Credit Partners (Metrics), Australia’s largest private debt provider and leading non-bank corporate lender, has appointed Kivanch Mehmet to the position of Director – External Relations, as investors’ interest in private debt continues to rise.

Mr Mehmet brings over 20 years’ experience working in financial services with much of this time dedicated to real estate investing across Europe, Asia and Australia.

Prior to joining Metrics, Mr Mehmet was Head of Institutional Capital at Qualitas Group, managing its institutional business development. Before that, he was Head of Wholesale Investor Relations at Charter Hall for nearly four years, where he was responsible for the Group’s unlisted institutional real estate fund offerings.

Metrics Managing Partner, Andrew Lockhart, said “Kivanch has a deep understanding of private debt and institutional capital, which will allow Metrics to originate and deepen further relationships, particularly in the real estate space and cater for an increased demand both in Australia and globally.

“With interest rates and inflation continuing to rise, investors are increasingly leaning towards private market investment opportunities. Metrics currently has in excess of A$14bn in AUM, of which real estate debt and equity investments are a significant component. As a leading non-bank corporate lender, Metrics is well positioned to support borrowers across a range of industries.

“Kivanch’s expertise will assist Metrics meet the demands of retail and institutional investors who want to take advantage of the attractive risk/return profile of private debt and look to hedge their portfolios from the current economic pressures impacting other asset classes.”

Mr Mehmet commenced on 1 February and is based in Sydney.

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Metrics Managing Partner, Andrew Lockhart, has welcomed the ratings, “The A-band ratings are endorsement of our strong credit processes,” he said.

S&P Global Ratings affirmed the A- rating for DASLF, saying it has very strong risk-adjusted leverage and a low underlying credit risk profile relative to its peers. DASLF holds a unique position as the only fund offering investors exposure to Australian corporate debt across the credit spectrum and provides a distinctive investment option for those seeking higher yields, S&P said.

The A- rating for REDF was also affirmed. S&P said it expects REDF to maintain its strong risk-adjusted leverage and that the Metrics underwriting practices supported the fund’s overall performance:

“Metrics has been investing in real estate debt through DASLF and other funds since 2013, deploying the same investment committee, trustee, and governance structure as REDF. Metrics’ consistent investment performance and governance structure demonstrate sound risk-management practices, in our view.”

Metrics manages more than $11 billion across 10 funds providing institutional and retail investors access to highly attractive Australian and New Zealand private debt.

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Andrew Lockhart

Equity Trustees has been appointed Responsible Entity (RE) and Custodian for the Metrics Direct Income Fund (Fund) which is managed by Metrics Credit Partners (Metrics), a leading Australian non-bank corporate lender and alternative asset manager specialising in origination and active management of private debt portfolios.

The Fund seeks to provide monthly cash income, capital preservation, and portfolio diversification by gaining exposure to diversified portfolios of directly originated loans to Australian companies.

Russell Beasley, Executive General Manager, Corporate Trustee Services, Equity Trustees said Equity Trustees was pleased to be selected by Metrics as both custodian and responsible entity for such an innovative income fund.

“We’re seeing a diversity of options available to investors who need income. Equity Trustees is excited to perform this dual role and bring our years of experience in custody and funds governance to Metrics’ direct private debt and loans capability,” said Mr Beasley.

Andrew Lockhart, Managing Partner at Metrics said: “Equity Trustees have adeptly stepped in as our new RE for the Metrics Direct Income Fund. We are fortunate to work with such an established organisation and benefit from its reputable custodial experience and wealth of expertise.

“The Fund offers everyday Australians access to well diversified portfolios of private debt assets, providing them with a regular income stream that has traditionally only been available to wholesale investors.”

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Andrew Lockhart

To support growth of its SME lending, Metrics has acquired Bigstone Finance, which brings deep experience and valuable relationships in this dynamic sector of the Australian economy.

Metrics Managing Partner Andrew Lockhart said the addition of the Bigstone team to the funding capability of Metrics would create the scale and focus for Metrics Business Finance to become a significant competitor in the SME and commercial property markets.

“Establishing Metrics Business Finance is a natural extension of Metrics’ existing skills and experience in non-bank lending to Australian business,” Mr Lockhart said.

“We believe that there is an exciting opportunity for Metrics in this market and that Metrics Business Finance can make a meaningful contribution to the task of funding SMEs and commercial property in Australia.”

Metrics was established in 2011 and manages a suite of ASX listed and unlisted funds with $10 billion assets under management and providing in excess of $15 billion in private credit to large corporates and other businesses in Australia and New Zealand.

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Andrew Lockhart

Metrics Credit Partners (Metrics), a leading Australian non-bank corporate lender, has joined the Net Zero Asset Managers (NZAM) initiative, marking its commitment to supporting the goal of net zero greenhouse gas emissions across its portfolio of loans and its own operations by 2050, if not sooner.

Metrics is an investor signatory of the initiative, which guides 220 groups managing US$57.4 trillion of investor funds in their efforts to limit warming to less than 1.5 degrees Celsius and support investment aligned with net zero emissions by 2050. In joining the NZAM, it has also become part of the Glasgow Financial Alliance for Net Zero which brings together the financial sector to accelerate the transition to a net-zero economy and the UN “Race to Zero” which aims to build business and civil society momentum towards addressing climate change.

Participation in the Net Zero Asset Managers initiative coincides with Metrics joining the Investor Group on Climate Change (IGCC), a collaboration of Australian and New Zealand investors focusing on the impact that climate change has on the financial value of investments.

Metrics joined IGCC in September and committed to the NZAM initiative to provide a plan for the firm’s activities and a measure of accountability for its investors, customers and employees.

As part of its commitment, Metrics is required to submit a plan to achieve net zero emissions and provide annual reporting on its progress toward that goal. Metrics is developing science-based targets for Scope 1, 2 and 3 greenhouse gas reductions and, as part of this, has engaged consultants to review emissions across its portfolio and its own operations.

Metrics Managing Partner Andrew Lockhart said investors and asset managers have a vital role to play in helping address the environmental impacts of the businesses they support.

“Metrics is determined to play a leading role in promoting and assisting with the transition to a low carbon economy.

“This presents an enormous opportunity and Metrics is committed to ensuring that we both lead by example and ensure our stakeholders have the means to participate in achieving a just and timely transition. Metrics is proud to join IGCC and commit to the Net Zero Asset Managers initiative to further this goal.”

Metrics provides private credit funding to Australian and New Zealand business and is a significant lender to the commercial property sector through a suite of listed and unlisted funds. Since being founded in 2011 it has provided more than $15 billion to borrowers across multiple industries and sectors. As one of the largest non-bank providers of private credit in Australia, Metrics actively promotes the development of the local capital markets and long-term, sustainable business practices to address the challenges of climate change.

Metrics has already taken several steps to enhance its capabilities for sustainable investing and achieving ESG outcomes, including:

• the appointment of experienced executive Alison Chan as Investment Director – Sustainable Finance
• updating its ESG policy
• becoming a Founding Member of the Australian Sustainable Finance Institute which is an unprecedented collaboration formed to help shape an Australian economy that prioritises human well-being, social equity and environmental protection, while underpinning financial system resilience and stability
• becoming the first Australian non-bank asset manager to join the Climate Bonds Initiative which aims to help redirect capital towards investment that can help achieve net zero emissions.

By joining IGCC, Metrics becomes part of a global group of investors collaborating to pull together and elevate the best investor guidance on tackling the climate crisis and advocate collectively for public policy to accelerate the net-zero transition – called the Investor Agenda.

At the COP26 meeting in Glasgow this week the Investor Agenda presented a statement, signed by 733 investors with over US$52 trillion in assets under management – around 50 per cent of the global total, urging governments to raise their climate ambition to limit global warming to no more than 1.5 degrees, implement meaningful emissions reduction policies, mandate climate-related financial reporting in line with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), and deliver COVID-19 economic recovery plans that support a just transition to net-zero emissions by 2050 or sooner.

The 2021 Global Investor Statement reads: “…we believe that those who set ambitious targets in line with achieving net-zero emissions and implement consistent national climate policies in the short- to medium-term, will become increasingly attractive investment destinations.”

“Full implementation of the Paris Agreement will create significant investment opportunities in clean technologies, green infrastructure and other assets, products and services needed in this new economy.”

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Alison Chan

Metrics Credit Partners has announced new appointments within its Investments and Corporate teams, as the business continues to grow and intensify its focus on sustainability, further cementing its position as Australia’s leading non-bank corporate lender.

Alison Chan has been appointed as Investment Director – Sustainable Finance, based in Sydney, responsible for developing innovative sustainable finance strategies to support the global transition to a low carbon economy. Ms Chan joins from National Australia Bank where she was Director, Sustainable Finance. Prior to that she was a Senior Advisor to Climate Bonds Initiative, based in London.

In 2018 Ms Chan was named Governance Professional of the Year by ICSA: The Governance Institute, for her commitment to good governance and her innovative and effective approaches to lasting improvements to governance.

Metrics Managing Partner, Andrew Lockhart, said: “We are thrilled Alison has joined our team to help enhance and deliver our sustainability vision. Her experience working with infrastructure owners in Sydney and London with their transition to a low carbon economy will be key as we continue to evolve our approach to ESG integration.”

Lalit Barhate and Luke Adams have recently been appointed to the corporate office as Director, Internal Audit and Group Treasurer, Finance & Fund Accounting, respectively.

“All three bring extensive industry experience and position us well for continued growth,” Mr Lockhart said.

Metrics also announced seven additional appointments – four analysts and three associates to support its investment team across Australia and New Zealand, taking the total team to more than 90.

Heightened environmental, social and governance (ESG) focus

Mr Lockhart said Metrics’ approach to responsible investment and ESG issues is growing in importance as regulation, climate change and societal expectations evolve.

“Sustainability is at the heart of the Metrics business and has always been a core part of our investment philosophy. We have a responsibility to act in the best long-term interests of investors in our funds, and we believe ESG issues present both risk and opportunity – affecting the performance of our funds and the long-term, risk-adjusted returns we ultimately deliver to our investors.”

Mr Lockhart also recognised the potential for the funds management industry to have an impact on creating a better world: “As a fund manager, the main channel through which we can influence the real world is through the companies in which we invest. We have a responsibility as a fund manager to accelerate and mainstream sustainability across the real economy.”

Metrics recently detailed its approach to sustainability in a new ESG policy. Environmental policy aims integrated into Metrics’ investment decisions include support of the Paris Agreement goal of limiting global warming to below 2ºC, preferably to 1.5 ºC, and actively supporting the adoption of renewable or lower-carbon fuels and energy sources.

Metrics believes certain activities and industry sectors represent outsize risk to the firm and its investors and therefore has several negative investment screens including on the development of new oil and gas fields and entities that operate in the coal industry.

Further reinforcing its commitment, Metrics recently became a Partner to the Climate Bonds Initiative and a member of the APLMA Green & Sustainable Loan Committee. This adds to existing commitments as:

• signatory to the UN-supported Principles for Responsible Investment
• founding Member of the Australian Sustainable Finance Institute, which was established to drive and coordinate the delivery of the Australian Sustainable Finance Roadmap, and
• supporter of the Transition Pathways Initiative.

“While the focus of ESG started in listed equities, investors want to know that ESG factors are integrated into the broad range of asset classes including private debt and private equity,” Mr Lockhart concluded.

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Mathew Fulton and Marc Hurwitz have been appointed as Investment Directors based in Sydney covering corporate origination. Both join from Investec Australia’s Corporate and Acquisition Finance (CAF) team, following Metrics’ successful acquisition of Investec’s CAF loan portfolio in March this year^[1].

Charles Tandy has also been appointed as an Investment Director, focusing on commercial real estate (CRE) asset origination.

Metrics Managing Partner, Andrew Lockhart, said: “We are very pleased to have Mathew, Marc and Charles on board. All three bring extensive industry experience and position us well for continued growth.”

“The Investec portfolio acquisition has been a great outcome for investors, as it has added to the diversity and liquidity across our funds, and expanded our relationship with Australian corporate borrowers,” Mr Lockhart said.

Mr Hurwitz has over 20 years of diversified experience in banking and funds management in both the Australian and European markets. Mr Hurwitz was part of Investec’s Corporate and Acquisition Finance team for over 11 years. Prior to this, he held roles at Ellerston Capital, EIM and Goldman Sachs. Mr Hurwitz joins Metrics today.

Mr Fulton has 18 years’ experience across the Australian and European debt markets. Prior to joining Investec, he worked at Commonwealth Bank of Australia as Head of Middle Market Private Equity Lending, and as Vice President – Credit Analyst, Proprietary Credit Trading at Deutsche Bank in London. Mr Fulton joined Metrics in mid-April.

Mr Tandy brings over 13 years’ experience and was previously at ANZ, as an Associate Director and Relationship Manager within the Institutional Property Group. Mr Tandy joined Metrics in mid-April.

The latest appointments build on several appointments announced in March.

——–

[1] Investec Australia’s corporate loan book sold to Metrics Credit Partners 

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Andrew Lockhart

Metrics Credit Partners’ MCP Master Income Trust (ASX:MXT) raised in excess of $190 million via a wholesale investor placement to further diversity its loan portfolio.

MXT issued more than 95 million units in the trust at $2 each in a placement to institutional and wholesale investors.

Andrew Lockhart, Managing Partner of Metrics Credit Partners, welcomed the outcome of the capital raising, which was oversubscribed.

“We are very pleased to continue to see strong investor interest in our funds and we thank investors that participated in the placement. The positive response to the offer reflects robust demand from investors for sources of attractive and stable income and is a great endorsement of the quality of our investment team and the strong track record of the fund.

“MXT continued to deliver reliable monthly income throughout 2020 even as many equity investors experienced reduced income as companies cut their dividend payments to repair their balance sheets – and this proven performance is underpinning ongoing investor appetite to invest in MXT,” Mr Lockhart said.

“Metrics will use the proceeds of this capital raise to further diversify the trust’s portfolio in order to reduce risk, enhance returns and further reduce costs over time.”

After initially planning to issue up to 95 million new units, Metrics issued 95,924,161 new units, in response to strong demand.

As Australia’s first ASX-listed corporate loan fund and the country’s largest credit LIT, MXT recently celebrated a three-year track record of successful performance. Launched in October 2017, MXT opened up a sector of the fixed income market that was previously only available to institutional investors and banks.

Since inception (through to the period ending 31 March 2021), MXT has delivered a net return of 5.30%, a spread of 4.30% p.a. above the RBA cash rate, and well above its target of 3.25% over the RBA cash rate. MXT is positively rated by all the major ratings agencies, including a ‘Superior’ investment rating by Australia Rating Analytics (Australia Ratings) and a ‘Highly Recommended’ by Zenith Investment Partners.

MXT’s current portfolio encompasses 154 corporate loans (as at March 31) diversified across industries and the credit spectrum.

Corporate loans offer stable cash yields with low risk of capital loss. They are also an inflation hedge and add diversity to an investment portfolio because of their low correlation to public equities and bonds.

Metrics is Australia’s largest non-bank lender in private debt and credit and has in excess of $7 billion in assets under management across its strategies.

Mr Lockhart said the successful capital raising will assist Metrics to continue to provide a source of nonbank funding to corporate Australia as businesses seek to pursue growth opportunities in the rebounding economy.

“As Australia’s economy shows its resilience yet again and recovers apace from the pandemic-led downturn, business confidence is rising and we are experiencing strong demand for credit from corporate borrowers across industries,” he said.

Joint lead managers on the offer were Taylor Collison, Morgans Financial, Ord Minnett and Wilsons Corporate Finance. Pinnacle Investment Management was appointed as distribution partner to Metrics. Minter Ellison acted as legal adviser to MXT.

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