Rixon Income Fund
The Fund invests in senior secured asset backed loans and seeks to deliver investors a return of 10-12% p.a. with distributions paid monthly.
The Rixon Income Fund is a wholesale Australian unit trust which invests in a portfolio of asset backed senior secured credit in the Australian SME sector.
The investment objective is to preserve capital and deliver the Target Return of a pre-tax cash return of 10% - 12% p.a. (net).
The Fund will deploy capital by way of investing in secured, senior ranking credit instruments.
The Fund invests in secured loans, taking security over real assets including property, equipment, inventory, and receivables, and equity.
The Fund avoids instruments that have equity risk such as hybrids and convertible notes, or offer equity inducements (e.g. equity kickers, equity warrants or options).
The Fund is designed for investors who are seeking cash returns of 10% - 12% p.a. (net) over the medium term.
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. |
| Loan Concentration | After the initial deployment phase, no single loan or borrower is intended to comprise more than 25% of Net Asset Value. However, in its initial deployment phase the Fund is likely to be concentrated on a small number of seed investments. |
| Sector Concentration | The Fund intends to lend across a range of assets and industry sectors. However, during its initial deployment phase, the Fund may be concentrated in specific loans via a small number of seed investments. |
| 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.
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 private credit professional and investment banker.
Prior to founding Rixon, he was an Executive Director at alternative asset manager FC Capital where he led execution of their SME private credit strategy and 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 credit 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 $160m in secured, high-yield Australian SME private credit lends and $10 billion in M&A across Australia, Indonesia, South Korea, and the Philippines.
Roles
Deal origination, director of Investment Manager, member of Fund Investment Committee
Qualifications
Bachelor of Commerce and Bachelor of Economics from the University of Queensland, recipient of the faculty International Economics Scholarship.
Shrikaanth has over 10 years’ experience across SME private credit and equity research.
He was most recently Associate Director at alternative asset manager FC Capital where he managed the structuring, diligence, and execution of lends in their SME private credit strategy.
Prior to this, Shrikaanth spent 5 years supporting the Deutsche Bank equity research team covering global listed equities.
He has executed over $100m in secured, high-yield Australian SME private credit lends.
Roles
Deal origination, director of Investment Manager, member of Fund Investment Committee
Qualifications
Bachelor of Commerce from the University of Madras, Associate of the Institute of Chartered
Accountants of India, and a CFA Charterholder.
Relevant Documents
You should read the PDS, TMD (if applicable) or any Investment Memorandum (or other offer documents) related to this product before making an investment decision. These documents (if available) can be found at https://rixon.capital/, or if this is a "wholesale investor only" investment, can be viewed by contacting the Product Issuer identified on the aforementioned website.
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