Revolution Asset Management Chief Investment Officer, Bob Sahota and Senior Portfolio Manager, Simon Petris discuss the latest developments within the Australian and New Zealand private debt market and the portfolio.
0:00 – Australian and New Zealand private debt market update.
3:19 – An explanation of how the portfolio yield rises as the RBA cash rate increases, with a current portfolio yield of 10.2% across the 47 loans within the portfolio.*
6:18 – Where we are seeing the pressure points and safety zones in our key focus areas of Leveraged Loans, Real Estate Debt and Asset Backed Securities (ABS).
11:23 – A detailed look at ABS exposure – including an overview of the main sub-sectors; Consumer Finance, Residential Mortgages, Auto Loans, Commercial Real Estate Lending, and Equipment Finance. And as lenders to ABS, why focusing on the private warehouse side and conducting thorough stress testing helps to mitigate risk against potential losses. We focus in on the Consumer Finance side and why we see this sub-sector as a significant source of alpha.
26:20 – An update on the performance of Revolution Private Debt Fund II and why manager and strategy selection is key when investing in private debt.
*Data for the Revolution Private Debt Fund II as at 30 June 2023. The portfolio yield is the total return anticipated on the portfolio if the holdings were held until their maturity.
This information is for institutional and professional investors only and has been prepared by Revolution Asset Management Pty Ltd ACN 623 140 607 AFSL 507353 (‘Revolution’) who is the appointed investment manager of the Revolution Private Debt Fund I, the Revolution Private Debt Fund II and the Revolution Wholesale Private Debt Fund II (together ‘the Funds’). Channel Investment Management Limited ACN 163 234 240 AFSL 439007 (‘CIML’) is the Trustee and issuer of units for the Funds. Channel Capital Pty Ltd ACN 162 591 568 AR No. 001274413 (‘Channel’) provides investment infrastructure services to Revolution and Channel and is the holding company of CIML. None of CIML, Channel or Revolution, their officers, or employees make any representations or warranties, express or implied as to the accuracy, reliability or completeness of the information, including forecast information, contained in this document and nothing contained in this document is or shall be relied upon as a promise or representation, whether as to the past or the future. Past performance is not a reliable indication of future performance. All investments contain risk. This information is given in summary form and does not purport to be complete. To the extent that information in this document is considered advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling units in the Funds please note that it does not take into account your particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice. For further information and before investing, please read the relevant Information Memorandum available on request.