Altor AltFi Income Fund
The Altor AltFi Income Fund provides investors with a return-maximising fixed income strategy via private credit investments. (for Wholesale Investors only)
The Fund is a return maximising private credit strategy with a focus on senior secured loans protecting downside while offering potential upside through attaching equity instruments. The Fund employs an extensive investment process that align with the Fund’s mandate and Altor’s philosophy. Rigorous qualitative and quantitative borrower due diligence covers key areas of credit investment that the investment team have built over investment cycles.
What we stand by:
Protect the Downside – We seek to understand the downside before investing and to minimise this risk through multiple processes.
Stick to your Knitting – We do not believe we can be experts in all assets however we can be specialists in niche Alternate asset.
Follow the Process – Repeatable investment process to identify opportunities in inefficient markets.
Invest with Patient Capital in Strong Thematics – provides superior returns through market cycles.
Altor uses a proprietary investment process covering 5 core investment pillars:
1. Origination and Screening
- The investment team sources investment opportunities through a range of channels including: Company relationships, industry contacts, screening of public and private companies & target sectors (macro driven).
- Private equity screening is undertaken on all opportunities that are originated to provide a high-level assessment of a prospective investment opportunity. The screening tool includes a high-level assessment of the following aspects:
-
-
- Strength of management team and shareholder alignment
- Industry analysis
- Economic moat assessment
- Financial strength
-
2. Due Diligence
- Quantitative due diligence
- Financial due diligence
- Serviceability assessment
- Coverage and security assessment
- Risk matrix
3. Structuring
- Strong focus on potential risks of the lend so the Fund is able to structure a facility that protects the downside.
- Providing a structure that best suits the investee company’s needs but also meets the Fund’s risk-return requirements which can be enhanced through loan features.
4. Investment
- Opportunity is presented to the investment committee for deliberation.
- Third party advisors are engaged to conduct legal due diligence, and additional financial due diligence where necessary.
5. Value-Add and Ongoing Monitoring
- The Manager seeks to mitigate risk post-transaction through direct and regular contact with board and management, access to information on an ongoing basis which includes the monthly testing of covenants, and ensuring timely payment of interest and principal.
- Leveraging the diverse experience of the Altor team to provide additional value to reduce credit risk and increase the value of any attaching equity-like instruments the Fund has.
The Fund has generated returns in excess of its targeted benchmark over the last 5 years. The Fund has an annualised return of 11.17% p.a. since inception (April 2018).
1 Past performance is not an indicator of future performance. Inception date 1 April 2018.
The Fund was featured in an AFR article that highlighted it as the top performing private credit fund in the country, based on 12-month returns.
Independent Research
The Fund has been approved by BondAdviser, a leader in the private credit research space. BondAdviser is a key partner of Morningstar and has provided research for major firms such as Escala Partners.
A copy of their research for the Fund is available for download on the ‘Documents’ tab.
Click here to read more about the BondAdviser research process.
Ben has 15 years’ experience in advising and investing in companies. He commenced his career as a project manager for a large international engineering consulting firm working on a number of infrastructure projects in Australia and Southeast Asia.
He later moved into investment banking, working for a leading corporate advisory house where over a 5-year period he executed over $2.0 billion in capital market transactions and $5.5 billion of public M&A transactions.
Ben is a founder and chief investment officer of Altor Capital and is active in the private credit and private equity sectors in Australia. He currently holds board and advisory roles for a number of private and public companies.
Qualifications
Ben has a Bachelor of Science and a Masters in Applied Finance and Investment.
Harley has over 25 years’ experience in investments and the funds management industry. His key background and capabilities include leadership, strategy, negotiation, and operational management. He has been actively involved in taking a number of businesses to publicly listed status in the Australian share market, providing capital raising, structuring, debt, equity, and board composition advice in this process.
Harley was the founder, director, and CEO of DNR Capital, one of Australia’s leading and recognised Australian Equities fund managers. He grew the business from start up to circa AUD +$1 billion in assets under management prior to his exit. DNR Capital manages money on behalf of retail, wholesale, and institutional clients both domestically and internationally. Prior to founding DNR Capital, Harley worked for Hartley Poynton Stockbroking.
Qualifications
Harley has a Bachelor of Science, a Graduate Diploma in Applied Finance and Investment and is a member of The Australian Institute of Company Directors.
Tom is an experienced investor and corporate advisor working across a range of industries with a focus on growth companies in the technology, finance, industrial, energy and resource sectors. In his previous roles, he has been instrumental in raising capital, advising on corporate structure and business strategy, managing operations and development, as well as launching technology platforms.
He is the COO and Investment Director at Altor Capital, a boutique alternative investment manager also providing corporate advisory services to both listed and unlisted emerging companies. His previous roles have included being VP of Operations for a banking technology platform in the United States and an Associate Director of a merchant bank in Australia.
Tom has worked with companies on many successful equity capital market, debt and M&A transactions including IPOs, private and seed raisings, secondary raisings, corporate restructures and takeovers.
.
Applications can be made by clicking the following link - Altor AltFi Income Fund Online Application
Statutory Statement
This offer of scheme interests is available to wholesale clients only. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
General Disclaimer
IMPORTANT STATEMENT ABOUT YOUR USE OF THIS SITE
Information on this site is intended for Australian users only.
This site is operated by Investment Markets (Aust) Pty Ltd. (ACN 634 057 248) (IMA, we, us and our), the holder of Australian Financial Services Licence (AFSL) no. 527875. The content is provided solely for information purposes, is not a recommendation or an offer to buy or sell a security, and is not warranted to be correct, complete or accurate. To the extent permitted by law, neither IMA, its affiliates, nor the content providers (such as the issuers of securities who appear on the site) are responsible for any investment decisions, damages or losses resulting from, or related to, the content, data and analyses or their use. The investment products on this site and any statements made about them by their issuers are not vetted, verified or researched by IMA. The presence of an investment product on this site should not be interpreted as an implied endorsement of it by IMA. Certain content provided may constitute a summary or extract of another document such as a Product Disclosure Statement. To the extent any content is general advice, it has been prepared by IMA. Any general advice has been provided without reference to your investment objectives, financial situations or needs. For more information refer to our Financial Services Guide. To obtain advice tailored to your situation, contact a financial advisor. You should consider the advice in light of these matters and, if applicable, the relevant Product Disclosure Statement (or other offer document) before making any decision to invest. Past performance does not necessarily indicate an investment product’s future performance. The content is current as at date of initial publication and may not be current as at your date of viewing. For a more complete understanding of all the terms and conditions of your use of this site click here.