Macquarie Asset Management is expanding into fund finance, with a plan to offer NAV facilities to direct lenders, Private Funds CFO understands.
The firm said it will extend financing to the levered sleeves of private credit funds, which have diversified pools of loans to mid-market companies. Macquarie AM added that it has already made a $100 million loan to an unnamed US direct lender sponsor’s flagship fund.
Macquarie Group’s banking arm is already a long-time player in the fund finance market. The bank underwrites both NAV loans and subscription lines.
Private Funds CFO understands that the fund finance offering is overseen by Macquarie AM’s private credit team, which in turn is part of its new credit division. The division was officially formed on November 1, with the consolidation of operations in private credit, public fixed income and asset finance.
Steve Berry, who heads fund capital for the private credit team, will helm the fund finance initiative, the asset manager said.
Macquarie AM’s fund finance push comes amid rising investor demand for leverage in direct lending funds, Berry told affiliate title Private Debt Investor.
“Direct lending investors are increasingly accessing the asset class via levered sleeves. This shift is driving the demand for credit portfolio financing and providing institutional capital a senior, investment-grade access point,” Berry said.