Rixon Credit Opportunities Fund

The Rixon Credit Opportunities Fund offers a sophisticated private credit strategy focused on secured lending to Australian SMEs. Targeting non-dilutionary debt funding of up to $20 million, the Fund operates via two primary lending pillars:

• First-ranking security over high-quality cash flows and intangible assets; and
• Second-ranking positions collateralised by substantial tangible assets

This ungeared vehicle provides true diversification by strictly excluding residential property and development exposure.

Rixon prioritises cash-generative borrowers, avoiding equity-like instruments such as warrants or hybrids to maintain a pure credit focus.

Designed for a three-to-five-year horizon, the Fund aims to deliver meaningful quarterly cash yields and capital appreciation, with a net Target Return of 10.0% + RBA Cash Rate.

All loan investments undergo rigorous due diligence and requires unanimous Investment Committee approval, ensuring a disciplined approach to generating attractive risk-adjusted returns within the Australian and New Zealand mid-market landscape.

Investment Strategy

The Rixon Credit Opportunities Fund is focused on secured lending to Australian SMEs seeking non-dilutionary debt funding of up to $20m and offering attractive credit characteristics.

The strategy has two lending pillars:

• First ranking secured lending to borrowers demonstrating high quality cashflows and valuable intangible assets
• Second ranking secured lending to borrowers demonstrating substantial tangible asset security

The Rixon Credit Opportunities Fund strategy is focused on generating an attractive risk-adjusted return via meaningful quarterly cash yield and capital appreciation.

First ranking security
Priority position on underlying borrower balance sheet when secured over high quality cashflows or valuable intangible assets

Tangible asset collateral
Where second ranking secured, investor capital is collateralised over recoverable real assets (e.g. receivables, equipment)

Quarterly Cash Interest
Cashflow generative borrowers

No direct property exposure
Offers investors true diversification from property debt and equity

No equity warrants or options
Focus on lending to borrowers who offer attractive credit characteristics

Leverage 

The Fund will be ungeared and will not utilise debt in seeking to achieve the Target Return. 

The Fund will deploy capital by way of secured credit instruments across both cash flow-based and asset-backed lending, focused on senior ranking security. 

The Fund intends to avoid investments that are equity like, such as hybrids and convertible notes, or offer equity inducements (e.g. listed and unlisted equity warrants, or options) and intends to not lend to parties who are unable to pay cash interest. 

The Fund is designed for investors who wish to have exposure to private credit and who are looking for returns in excess of the RBA Cash Rate + 10% per annum (net of fees and costs) over the medium term. This is expected to be achieved through a combination of income and capital. Given the expected illiquidity of the Fund’s assets, the Fund is likely to be most suited for investors who have an investment horizon of three to five years. 

Investments are intended to be sourced from Rixon’s wide network of contacts and will be added to the Fund’s portfolio if, in Rixon’s view, they provide the appropriate risk-return profile for the Fund. New investments are subject to due diligence, documented review, and unanimous approval by the Investment Committee.   

Rixon intends that the Fund will invest in assets that are unrated by investment rating agencies and that the Fund’s portfolio will typically have the characteristics summarised in the following table.