Private Credit Fund’s Strong Start: What Risks Lie Ahead for MA Credit Income Trust?
MA Credit Income Trust has reported a $9.7 million profit and successfully raised $49.7 million through a wholesale placement, delivering a net return of 2.95% since its ASX listing in March 2025.
- Operating profit of $9.656 million for the period
- Raised $49.7 million via wholesale placement at $2.00 per unit
- Net asset value reached $331.6 million with 165.7 million units on issue
- Net return of 2.95% outperformed benchmark RBA Cash Rate + 4.25%
- Monthly distributions totaling 5.6913 cents per unit paid or payable
Fund Launch and Capital Raise
MA Credit Income Trust, a newly established managed investment scheme focused on private credit, commenced operations in February 2025 and listed on the ASX in March under the ticker MA1. In June 2025, the Fund completed a significant wholesale placement, issuing nearly 25 million new units at $2.00 each, raising $49.7 million. This capital injection increased the Fund’s net asset value to approximately $331.6 million, enhancing its scale and capacity for portfolio diversification.
Performance Highlights
For the period from inception to 30 June 2025, the Fund reported an operating profit and total comprehensive income of $9.656 million. The Fund delivered a net return of 2.95% (after fees) from the date of external unit allotment in late February to the end of June, outperforming its benchmark, the RBA Cash Rate plus 4.25%, which returned 2.73% over the same period. This performance reflects the Fund’s disciplined investment approach and focus on capital preservation.
Investment Strategy and Portfolio Composition
The Fund invests primarily through the MA Credit Income Fund (Wholesale) and direct credit assets, targeting private credit opportunities across asset backed lending, direct asset lending, and direct corporate lending. The portfolio is well diversified, with exposure to 179 individual credit investments across 136 issuers and 23 credit sub-segments. Approximately 74% of the portfolio is rated BBB or BB equivalent, and over 99% of loans are senior or structured secured, underscoring the Fund’s conservative risk profile.
Distributions and Investor Benefits
During the reporting period, the Fund paid or declared monthly distributions totaling 5.6913 cents per unit, with a distribution reinvestment plan available since March 2025. The Fund confirmed a July 2025 distribution of 1.520224 cents per unit, continuing its commitment to providing consistent income to investors. The reinvestment plan offers investors flexibility to compound returns by acquiring additional units at the net asset value less any applicable discount.
Governance and Risk Management
Managed by MA Financial’s Global Credit Solutions team, the Fund benefits from a rigorous credit evaluation and active portfolio monitoring process. The Responsible Entity, Equity Trustees Limited, oversees governance with a board comprising experienced directors. The Fund’s financial statements were audited by KPMG, which issued an unqualified opinion, affirming the reliability of reported results. The Fund maintains a strong focus on credit risk management, liquidity considerations, and capital preservation amid evolving market conditions.
Bottom Line?
As MA Credit Income Trust scales up and navigates private credit markets, investors will watch closely for sustained income delivery and portfolio resilience.
Questions in the middle?
- How will the Fund deploy the recent $49.7 million capital raise in the current credit environment?
- What impact might rising interest rates or economic shifts have on the Fund’s credit portfolio performance?
- Will the Fund consider expanding its direct credit investments beyond the underlying wholesale fund?
