MA1 Raises Nearly A$50M Through 24.85M New Units at $2.00 Each
MA Credit Income Trust (ASX, MA1) has successfully raised nearly A$50 million through a wholesale placement, reflecting strong investor appetite for private credit exposure. The capital will be deployed across diversified private credit strategies managed by MA Investment Management.
- Raised A$49.7 million via issuance of 24.85 million new units at $2.00 each
- Excess demand led to a concurrent sell down of 12.5 million existing units by MA Fund
- Placement proceeds targeted at diversified private credit investments
- New units to rank equally with existing units and settle by early July 2025
- MA Fund’s holding reduced to approximately 3.6% post-sell down and placement
Strong Capital Raise Amid Growing Demand
MA Credit Income Trust (ASX, MA1) has completed a significant wholesale placement, raising A$49.7 million through the issuance of nearly 25 million new units priced at $2.00 each. The placement, which closed on 23 June 2025, attracted robust interest from both existing and new investors, underscoring the growing appetite for private credit exposure within Australia’s investment landscape.
The strong demand exceeded the initial offer, prompting a strategic sell down of approximately 12.5 million existing units held by the MA Fund, a managed investment scheme affiliated with MA Investment Management. These units were sold concurrently at the same offer price, allowing additional investors to gain exposure without diluting existing unit holders disproportionately.
Investment Strategy and Market Positioning
Proceeds from the placement will be invested in line with MA1’s investment mandate, focusing on private credit opportunities across three core segments, direct asset lending, asset-backed lending, and direct corporate lending. This diversified approach leverages MA Financial’s proprietary deal flow and expertise, aiming to deliver stable returns through exposure to both Australian and global private credit markets.
Frank Danieli, Head of Global Credit Solutions at MA Investment Management, expressed satisfaction with the placement’s outcome, highlighting the trust’s ability to attract strong investor support. He emphasized that the capital will be deployed into a large, diversified portfolio, reinforcing MA1’s position in the private credit sector.
Capital Structure and Next Steps
The new units issued under the placement will rank equally with existing units, with settlement scheduled for 30 June 2025 and allotment on 1 July 2025. Trading of these units on the ASX is expected to commence on 2 July 2025. Following the sell down and placement, the MA Fund’s holding in MA1 will reduce to approximately 3.6%, reflecting a recalibrated ownership structure.
This capital raise not only strengthens MA1’s balance sheet but also enhances its capacity to capitalize on private credit opportunities amid evolving market conditions. Investors will be watching closely for how effectively the trust deploys this fresh capital and manages risk in a competitive credit environment.
Bottom Line?
MA Credit Income Trust’s successful raise sets the stage for expanded private credit investments, but execution and market conditions will be key to sustaining momentum.
Questions in the middle?
- How will MA1 prioritize deployment of the new capital across its private credit segments?
- What impact will the sell down have on MA Fund’s strategic influence over MA1?
- How might shifting credit market dynamics affect MA1’s portfolio performance in the coming quarters?
