Revolution Private Debt PIE Fund (NZD)

New Zealand Wholesale investors now have access to the flagship Australian and New Zealand private debt strategy managed by one of Australia’s leading and most experienced firms specialising in private debt.

The Revolution Private Debt PIE Fund (NZD) (the ‘Fund’) provides New Zealand wholesale investors with exposure to Revolution’s Australian and New Zealand private debt strategy, established in December 2019 and previously accessible only to Australian investors. Established as a Portfolio Investment Entity (PIE) Fund, it provides indirect access to a portfolio of senior secured loans across the private corporate loan, real estate debt and asset back securities markets.

The Fund, through its investment in the Revolution Private Debt Fund II (the ‘Underlying Fund’) is designed to generate risk-adjusted returns while offering potential diversification benefits with low correlation to traditional public markets, helping to reduce overall portfolio risk and enhance capital stability.

The Fund targets an annual return of the RBNZ Official Cash Rate (‘OCR’) plus 4% to 5% p.a. (after fees and before tax) and aims to achieve this return with low volatility and with the benefit of having security over the underlying assets.

View Fund Performance
Download the Fund Fact Sheet
Request the Information Memorandum

FUND HIGHLIGHTS

Defensive Private Debt Strategy

Focuses on compelling relative value loans within private debt sectors, including private company and leveraged buyout debt, public and private asset-backed securities, and real estate debt (excluding construction or development).

Investing in Resilient Industries

Prioritises resilient industries with high credit standards, employing extensive credit due diligence and robust governance to minimise portfolio risk during economic downturns, potentially enhancing overall capital stability.

Potential for Strong Risk-Adjusted Returns

Offers potential for higher yields compared to traditional fixed income, with reduced volatility and the potential for enhanced overall returns. Structural protections help mitigate default risk, improving risk-adjusted returns.

Semi-Liquid Structure

Provides investors with flexibility to redeem some or all of their investment quarterly, contingent upon sufficient cash reserves within the Fund^.

Experienced Team and Investor Alignment

Actively managed by a team with decades of experience, demonstrating a proven track record in navigating market cycles and managing substantial portfolios. 100% ownership by Revolution team members ensures strong alignment of interests with investors.

^ Investments in the Fund are redeemable on request, subject to the discretion of FundRock NZ Limited (for more information, refer to the Information Memorandum). A redemption request can be made by providing written notice to FundRock NZ Limited. The Fund aims to offer quarterly redemptions, subject to the Fund having sufficient available cash (liquidity). Generally each of 31 March, 30 June, 30 September and 31 December will be a redemption date (“Redemption Date”). Investors should be aware that the Fund may not hold sufficient cash to fund all redemption requests for a particular Redemption Date.

POTENTIAL RISKS OF INVESTING IN THE FUND

There are several specific risks associated with investing in the Fund, including but not limited to:

  • Liquidity risk
  • Distribution risk
  • Interest rate and currency risk
  • Contract risk
  • Market risk
  • Regulatory risk
  • Leverage risk
  • Counterparty risk

Please see section 4 “What are the risks of investing?” in the Information Memorandum dated 2 February 2024 for more information.

Revolution’s due diligence and focus on strong, stable, market leading businesses can potentially produce sound cash flows regardless of the market cycle. Revolution continues to focus on identifying and capturing real value opportunities across businesses that can withstand volatile economic conditions.

FUND FACTS

Manager FundRock NZ Limited
Trustee Public Trust
Investment manager Revolution Asset Management Pty Ltd
Administrator & custodian Adminis NZ Limited
Fund structure Managed investment scheme established under a Trust Deed. The Scheme offers one fund, being the Revolution Private Debt PIE Fund (NZD) which invests into the Revolution Private Debt Fund II.
Investment objective RBNZ Official Cash Rate (OCR) plus 4% to 5% p.a. (after fees and before tax).
Fund target asset allocation Underlying Fund Units: 95%
Cash and Cash Equivalents: 5%
Target allocation ranges of the Underlying Fund
Target allocation range
Leveraged loans 20%-80%
Asset backed securities 20%-80%
Commercial real estate loans 0%-60%
Bonds 0%-30%
Cash 0%-30%
Minimum initial investment NZ$100,000 with further increments of NZ$25,000
Fees (% of net asset value)
  • Fixed annual Fund charges: 0.92% p.a. (exclusive of GST) of the net asset value of the Fund
  • GST (estimated): 0.03% p.a.
  • Annual Fund charges (estimated, including GST): 0.95%
Currency hedging Foreign currency exposure is fully hedged to New Zealand dollars.
Applications Monthly
Redemptions Generally quarterly
Distribution frequency Quarterly
Unit pricing Monthly
Valuation frequency Fund Assets (other than cash and units in the Underlying Fund) will be valued by an independent valuer quarterly.

Refer to the Information Memorandum for more information.