Rixon Income Fund
The Rixon Income Fund is an asset-backed lender with a Target Return of 10-12% p.a. with distributions paid monthly in cash.
Comparison Data
1Performance
| 1 month | 3 month | 1 year | 3 year | 5 year | Since Inception | Inception Date |
|---|---|---|---|---|---|---|
| 0.94% | 2.9% | 12.31% | - | - | 12.5% | 14 Nov 2022 |
Fees
| Management Fee | Performance Fee | Morningstar Total Cost Ratio |
|---|---|---|
| 1.5% | 0.35% | 2.57% |
The Rixon Income Fund is an asset-backed lender offering a market leading risk-adjusted return in the SME private credit space.
The Fund strategy is focused upon 2 key pillars:
- Capital preservation; and
- Regular monthly income
The Fund focuses on lending to the underbanked $2m - $20m niche that is too small for banks or large funds.
The scarcity of capital in this niche allows this award-winning Fund strategy to have:
- A 10% - 12% p.a. (net) Target Return, paid monthly in cash
- A loan portfolio 100% first ranking senior secured over tangible assets such as equipment and receivables
An investment in the Fund offers investors an opportunity to diversify their portfolios away from property private credit and equity.
An asset-backed lending strategy, the Fund deploys capital by way of investing in secured, senior ranking credit instruments.
The Fund takes security over tangible assets including property, equipment, inventory, and receivables, and equity.
The Fund does not permit exposure to the following:
- Instruments that have equity risk such as convertible notes or equity warrants
- Property development
- Direct property exposure
The Fund is designed for investors who are seeking cash returns of 10% - 12% p.a. (net) over the medium term, with distributions paid monthly in cash.
The strategy is focused on lending to the underbanked sub-$20m SME niche. This sub-segment is classified as too small for banks or large private credit funds.
This scarcity of capital permits the Fund to deliver a higher return via a scarcity premium rather than a risk premium.
Rixon intends that the Fund will invest in assets that will typically have the characteristics summarised in the below table.
| Characteristic | Fund Constraints |
| Geographical | Focus on Australian opportunities with the ability to consider suitable opportunities in New Zealand. |
| Loan Size | Loans of $2m to $20m with the potential to undertake larger loans subject to Investment Committee approval. |
| Security | All loans are to be secured against suitable identified and valued assets. Assets may include real property, equipment, receivables, and inventory, and underlying equity. |
| Ranking | No less than 100% of loans written will be senior ranking. |
| Currency | No less than 100% A$ assets. |
| Leverage | No leverage permitted in the Fund. |
| Excluded Borrowers | The Fund will generally not lend against: - Cryptocurrency - Direct commodity exposure (unless fully hedged) - Property development or residential property |
Quarterly redemption requests with 90-days’ notice.
Note the Fund has historically funded redemptions with 30-day's notice.
Rixon was founded by senior private credit and investment banking professionals with a background in deploying secured, high yield private credit.
The Rixon team has expertise in the origination, assessment, structuring, and execution of non-vanilla credit in the Australian SME market.
Rixon enjoys a deep relationship with a national network of origination channels, allowing it to readily access potential borrowers across multiple sectors and geographies.
Patrick is an experienced SME credit professional and investment banker.
Prior to founding Rixon Capital, he was an Executive Director at an alternative asset manager where he led execution of their mid-market private credit strategy and broader corporate development initiatives.
Previously, Patrick was a Senior Vice President at independent M&A advisor AquAsia where he was a founding member of their SME private fund.
Patrick commenced his career at Macquarie Capital’s Technology, Media, Entertainment, and Telecommunications investment banking team in Sydney and Singapore.
He has executed over $300m in Australian SME private credit lends and $10 billion in M&A across Australia, Indonesia, South Korea, and the Philippines.
Patrick holds a Bachelor of Commerce and a Bachelor of Economics from the University of Queensland where he was awarded the International Economics Scholarship.
Daniel is a seasoned private credit professional with over 10 years of experience across funds management and corporate finance.
Prior to joining Rixon, Daniel led the growth credit strategy at Marshall Investments, a Sydney-based family office and fund manager, where he executed over $150m of senior loans to high-growth companies in Australia.
Earlier in his career, Daniel worked with Ernst & Young in both Sydney and London, specialising in M&A and debt advisory within the financial services sector.
Daniel has a Bachelor of Applied Finance degree and is a qualified Chartered Accountant.
Shrikaanth has over 11 years of experience across equity research & valuation and SME private credit.
He was most recently Associate Director at an alternative asset manager where he managed the structuring, diligence, and execution of over $100m high-yield SME private debt transactions.
Prior to this, Shrikaanth spent 5 years supporting the Deutsche Bank equity research team covering global listed equities.
Shrikaanth has a Bachelor of Commerce and is a qualified Chartered Accountant and CFA Charterholder.
Hessan holds over five years of experience in navigating both private and public markets. During this time, he has adeptly managed corporate transactions exceeding >$ 1 billion in value, providing tailored solutions to companies of varying sizes and industries.
Hessan has a Masters of Commerce degree from University of Sydney.
John-Paul has a background in financial risk management and SME advisory with experience in life insurance and public practice.
He is passionate about the role of private credit in generating reliable income and safeguarding investor capital, with an interest in how emerging technologies can enhance analysis and risk management.
John-Paul holds a Bachelor of Applied Finance from Macquarie University and is currently completing Chartered Accountant (CA) and Chartered Alternative Investment Analyst (CAIA) certifications.
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Published by Rixon Capital Pty Ltd
FIXED INTERESTINVESTOR EDUCATION
EXPERT PERSPECTIVESFIXED INTERESTPRIVATE ASSETS
PROPERTYMANAGED FUND
Published by Rixon Capital Pty Ltd
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