GCI Asset Backed Finance Fund

The Fund was established on 4 June 2020 and after approval from the members of two GCI funds, the GCI Asset Finance Fund and the GCI Invoice Finance Trust 1, these funds “merged” by a rollover into the Fund on 1 July 2020.

The Fund will provide Unitholders with an exposure to the Australian and New Zealand private debt market, which is not easily accessible by non-institutional investors. 

The Fund aims to create a diversified portfolio of secured debt facilities to financial Borrowers (non-bank lenders lending to either businesses or consumers) and secured loans to corporates with physical assets, financial assets or receivables as collateral. In addition to providing debt facilities, the Fund may be able to receive options/warrants in the equity of the Fund’s Borrowers.

At the Preparation Date, the Fund has provided facilities to a variety of Borrowers, including non-bank lenders across a range of asset classes and several direct, asset backed corporate exposures.

The Fund’s investment objective is to provide strong risk-adjusted returns with low risk of capital loss by creating a highly diversified portfolio of structurally protected senior loan facilities, which benefit from asset or receivable backing. 

The Fund may provide secured mezzanine or subordinated loan facilities in the future, however it has not as at the Preparation Date. The Fund will aim to pay monthly distributions, predominantly in the form of income.

Types of Investments

The Fund will provide secured debt facilities to financial Borrowers (non-bank lenders) or secured loans to corporates with physical assets, financial assets or receivables as collateral. In addition to providing debt facilities, in certain circumstances, the Fund may be able to receive options/warrants in the equity of the Fund’s Borrowers.

Examples of the types of non-bank lenders that the Fund may advance Debt to include, but not limited to:

• equipment finance
• receivables finance
• consumer loans
• purchased debt ledgers
• business loans
• agricultural finance
• commission trail book funding.

The Fund may also lend to companies who are able to provide physical assets, financial assets or receivables as security collateral. For example, as at Preparation Date, the Fund has two facilities to corporate entities secured by large pieces of mining equipment (excavators and dump trucks) and one facility to a corporate entity secured over its accounts receivables.

While the Fund has not advanced any secured mezzanine or subordinated loan facilities as at the Preparation Date, it may in the future. The Fund may also participate in syndicated loan facilities provided by a number of lenders to a borrower, if that facility otherwise conforms with the requirements of an equivalent bilateral loan.

After an initial Lock Up Period of 12 months for a new capital commitment by a Unitholder, redemption requests will be considered from that Unitholder subject to, among others, the restrictions described in this Information Memorandum.

Redemption requests will be considered and accepted on a best endeavours basis by the Trustee on a quarterly basis on designated Redemption Dates throughout the year.

There may be instances where the Fund has elevated cash holdings due to the repayment of a debt facility. In such an instance, the Trustee reserves the right to return capital to Unitholders on a pro-rata basis.

Summary information

• The information provided in this presentation is selective and may not be complete or accurate for your particular purposes and should not be construed as a recommendation to invest. The information is given in good faith and is believed to be accurate at the time of compilation. Neither Global Credit Investments Pty Ltd nor its directors or employees make any representation or warranty as to the accuracy, reliability, timeliness or completeness of the information.

Not financial or product advice

• This presentation has been prepared for use in conjunction with a verbal presentation and should be read in that context. The purpose of this presentation is to provide information only and the contents of the presentation does not purport to provide investment advice. We suggest that investors consult a financial advisor prior to making any investment decision. The presentation does not take into account the investment objectives, financial situation or particular needs of any person and should not be used as the basis for making investment, financial or other decisions.

Forward looking statements

• This presentation includes forward looking statements. The forward looking statements reflect the Company’s views and assumptions with respect to future events as at the date of this presentation. Actual and future results could differ due to various factors, many of which are beyond our control. Given these uncertainties, no one should place undue reliance on any forward looking statements.

Disclaimer

• To the extent permissible by law, Global Credit Investments Pty Ltd and its directors and employees disclaim all liability (whether arising in contract, tort, negligence or otherwise) for any error, omission, loss or damage (whether direct, indirect, consequential or otherwise).