Frank Danieli

Global alternative asset manager, MA Financial (ASX: MAF) has partnered with Humm Group’s (ASX: HUM) asset finance platform, Flexicommercial, to acquire up to $1 billion worth of its commercial asset finance loans via MA Financial’s private credit managed funds in a forward flow arrangement.

This partnership arrangement is an Australian first, giving MA Financial’s private credit funds access to a substantial pipeline of high quality, prime asset finance loans, leveraging the expertise of Flexicommercial. The $1 billion of commercial asset finance loans, including an initial seed pool of $500 million, represent a meaningful portion of Flexicommercial’s origination volume during the initial term of the partnership, alongside its warehouse and term deal programs.

MA Financial’s Head of Credit Investments and Lending, Frank Danieli, said, “Our new strategic partnership with Flexicommercial is an innovative financing strategy and an advancement for Australia’s private credit industry. We have seen the power of co-lending programs globally and are seeking to introduce these opportunities to our local market. This arrangement allows us to access an attractive pipeline of prime asset finance deal flow, diversify MA Financial’s private credit portfolio and participate in the growth of the commercial asset finance sector for our managed funds.

“We have identified asset financing as an attractive lending space for some time. The rise of the broker channel is creating more options for borrowers and a more level playing field for non-bank financiers to provide customers lending solutions. We like sectors where banks are ceding market share and are no longer the most efficient provider of capital. We think there are compelling risk-adjusted returns available in these market gaps. This unique partnership structure with Flexicommercial is an effective way for us to capitalise on these thematics in asset finance for our managed funds.”

“Flexicommerical is one of the leading asset finance providers in Australia with a highly experienced, capable management team and a strong track record. This partnership enables them to focus on what they do best with additional capital.”

Under the partnership, MA Financial’s managed funds will finance the assets along with a global bank, while Flexicommercial will maintain servicing and other loan management responsibilities.

CEO of Flexicommerical, Stuart Grimshaw, said, “Our partnership with MA Financial offers a diversified funding platform with scale to accelerate growth in constrained markets. It’s a strategic opportunity that allows us to service our clients while diversifying our funding sources, creating capital flexibility between our warehouses, term programs and this strategic partnership, which is a ‘capital-lite’ structure.”

“We have worked closely with the team at MA Financial to deliver this new funding platform. As Frank has outlined this is a true strategic partnership and one that will add substantial value to our shareholders and MA Financial’s investors.”

The transaction is underpinned by a diversified pool of high-quality business critical equipment assets, originated, and serviced by a leader in the commercial asset finance sector.

The establishment of the forward flow arrangement represents the beginning of a long-term partnership between MA and Humm, with the potential to scale beyond the initial $500 million seed pool commitment.

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Mr. Grimshaw, who has a 35-year career in financial services, will also be expected to be the Chair of the Audit and Risk Committee.

His most recent position was CEO and Director of EZCORP Inc, a Nasdaq-listed company that he joined in November 2014 as Executive Chair. Before joining EZCORP, he was Managing Director and Chief Executive Officer of the Bank of Queensland.

Over his career, Mr. Grimshaw, who graduated with a Bachelor of Commerce and Administration from Victoria University in Wellington, New Zealand, and has an MBA from Melbourne University, has held senior executive roles at several international banking and finance companies.

A former Olympian who represented New Zealand in hockey at the 1984 Games, he has also served as non-Executive Chair of Cash Converters International Ltd and as a Director on Suncorp Ltd.

Raiz Chair Harvey Kalman says: “Stuart brings a wide array of capital market and financial services experience, both as a senior executive and director, to the Board. The fact that EZCORP’s operations had a significant presence in Latin America brings an added skill set at a time we are consolidating our Indonesian and Malaysia operations and are poised to enter the Thai market”.

Mr. Grimshaw says: “Raiz is a great success story among the wealth management fintech start-ups in Australia. Not only has it established a firm foothold in the Australian market but has had the vision to take its micro saving and investing model to the growth markets of Southeast Asia.

“I believe my experience accrued through many varied positions in financial services entities, and geographies, over the past 35 years equip me to make an important contribution to the company.”

Mr Grimshaw will replace David Gordon on the board of Raiz Invest Limited on 1 December 2021.  David was instrumental in founding and guiding Instreet Investment Limited with George Lucas in 2007, which in 2018 was restructured into Raiz Invest Limited.

“We cannot thank David enough for his service to the Company over the last 14 years”,  Mr Kalman added.

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