Bob Sahota

Income Asset Management (IAM) has successfully arranged commitments for a $130 million debt transaction across multiple tranches for MONEYME (ASX: MME), acting as the sole lead manager.

This structured debt package marks IAM’s largest unrated over-the-counter bond transaction in Australia’s asset-backed securities (ABS) sector as sole lead manager. The transaction will support the refinancing and expansion of MONEYME’s Horizon Warehouse Trust, increasing its lending capacity for personal loans and credit cards.

The cornerstone investor for the transaction is Revolution Asset Management, a private debt investment house run by Bob Sahota, Simon Petris and David Saija, and secured strong investor support across all tranches from credit funds, family offices, and high-net-worth investors.

IAM’s chief executive officer Jon Lechte said IAM led the transaction drawing on its structuring and distribution expertise, and highlighted the high investor demand.

“The deal was oversubscribed at all tranche levels, underscoring the appeal of unique opportunities like this. It also marks a significant milestone for IAM Group, as our largest sole-led primary bond transaction, delivering above-average credit margins for investors.”

“We thoroughly enjoyed working with the MONEYME team, whose innovative approach to credit, strong execution, and commitment to responsible lending were key to this successful transaction.”

The transaction refinances an existing $85 million warehouse facility for MONEYME. Due to the company’s strong growth and positive outlook for loan expansion, the facility was increased to $130 million.

Clayton Howes, Managing Director and CEO of MONEYME said: “MONEYME has a long-standing relationship with IAM, and we are pleased to be working with them again to refinance our Horizon Warehouse Trust. Their expertise helped secure an upsized $130 million facility on more favourable terms, expanding our lending capacity while lowering our cost of funds. The strong investor appetite and improved margins reflect confidence in the asset class, the quality of our portfolio, and our market position.”

Settlement is expected to take place on 18 March 2025.

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(L to R): David Saija, Bob Sahota, Simon Petris 

UniSuper, one of Australia’s largest super funds with more than 620,000 members and over A$115 billion in funds under management has appointed specialist private debt manager, Revolution Asset Management to manage an Australian and New Zealand private debt portfolio.

The separately managed portfolio managed by Revolution Asset Management has been steadily deploying capital into senior secured Australian and New Zealand private debt since its establishment earlier this year.

As a specialist private debt manager, Revolution Asset Management seeks to provide stable income from senior secured loans with the most compelling relative value across corporate leveraged loans, private asset backed securities, and real estate loans (excluding construction or development). The strategy is tracking above its target return of cash plus 4% to 5% p.a. (net of fees and expenses) and aims to achieve this return with low volatility.

Commenting on the mandate win, Chief Investment Officer, Bob Sahota said: “I am delighted on behalf of the team at Revolution Asset Management to have been appointed by a super fund that has a long and proud history of managing the retirement savings for generations of Australians. Private debt has been an important component of institutional and wealth portfolios, and in the current uncertain environment can help to further diversify risk and deliver stable income. We look forward to a long and mutually beneficial relationship that will grow over the coming years.”

Revolution Asset Management’s focus has been on lending to companies that occupy market leading positions, with high barriers to entry and transparent cashflows, which sustain through the market cycle in leveraged buyout senior secured lending. In Asset Backed Securities, the focus has been on the more established non-bank lenders that have scale and access to both debt and equity capital if required. Moreover, the pools of loans that Revolution lends against are focused on prime borrowers with high credit scores. These are loan pools that are expected to perform well even under a recessionary scenario. In real estate lending, Revolution seeks to fund established and stabilised properties in office, retail and industrial sectors with quality tenant cashflow. It is this cashflow that is assessed for debt serviceability and repayment, rather than merely relying on a forward view of valuations.

Revolution Asset Management has raised in excess of A$2.5 billion from institutional, family office and wholesale investors. The Australian and New Zealand Private Debt portfolio was yielding 9.6% (gross return as at 31 March 2023) which is above the stated target of the strategy.

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Steve Sutinen and Lucie Bielczykova joined the investment team in February 2021 in newly created roles alongside founders Bob Sahota, Simon Petris and David Saija.

As Portfolio Manager, Steve’s focus is on the Asset Backed Securities portfolio − managing the investment process including origination, due diligence and on-going monitoring of existing transactions. Steve brings strength to Revolution’s ESG policy given prior experience in this field.  As Associate Portfolio Manager, Lucie will assist in managing senior secured assets including corporate leveraged loans, private asset backed securities and real estate loans.

Steve has held a variety of roles within fixed income markets having spent 21 years at Challenger Financial Services, within the Life Company as well as significant time in the Fixed Income team, most recently as Senior Portfolio Manager responsible for the deployment of over A$1 billion in the alternative debt portfolio which included investments in insurance linked securities, royalty securitisations and aircraft finance, amongst others. He has deep experience covering a broad range of fixed interest investments including investment grade corporate credit, domestic Asset Backed Securities, offshore Asset Backed Securities, and private debt. Before joining the investment team at Revolution, Steve held the role of Senior Relationship Manager at Bluestone APAC, responsible for managing a significant third party servicing contract for a A$7 billion mortgage portfolio.

Lucie joins Revolution from JANA, a leading asset consultant, where she was focused on fixed income research, portfolio construction and investment strategy advice for a range of Australian and New Zealand institutional clients. Lucie has also held the role of fixed income Portfolio Analyst at Challenger Limited, and began her career at Kapstream Capital, working alongside Bob Sahota and David Saija. Lucie is studying towards becoming Chartered Financial Analyst (CFA) charterholder and has completed her CFA Level 1 and 2 exams in which she ranked above the 90th percentile of candidates globally.

Chief Investment Officer at Revolution Asset Management, Bob Sahota, said “Steve and Lucie are investment professionals of the highest calibre with extensive experience in private debt portfolio management and deal origination, structuring and analysis. They will be invaluable in driving investment performance and delivering on our portfolio objectives.  We look forward to continuing to cultivate our business by building strong, trusted relationships with our investors and growing our footprint both domestically and in New Zealand.”

Revolution Asset Management’s investment funds include predominantly senior secured assets such as corporate leveraged loans, private asset backed securities and real estate loans, that benefit from having security and structural protections such as loan covenants. Having established the firm three years ago, Revolution Asset Management manages two strategies on behalf of institutional and wholesale investors, with its second fund, Revolution Private Debt Fund II approaching A$400m in committed capital with 90% of this capital deployed since it launched in December 2019. Overall, Revolution Asset Management has invested in excess of A$850 million on behalf of its funds and institutional clients (as at 31 December 2021).

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