Revolution Private Credit Income Trust Prices A$60m Placement at A$2.00 Per Unit
Revolution Private Credit Income Trust has launched a A$60 million institutional placement at A$2.00 per unit, aiming to bolster its investment in senior secured loans across Australia and New Zealand. The trust targets a net yield to maturity of 7.83%, emphasizing disciplined risk management and transparency.
- Institutional placement of approximately A$60 million at A$2.00 per unit
- Proceeds to fund investments in senior secured corporate loans, asset-backed securities, and commercial real estate loans
- Target return of RBA Cash Rate plus 4% p.a. with current net yield to maturity of 7.83%
- Strong governance and risk controls avoiding high-risk sectors like property development
- Placement managed by Revolution Asset Management with joint lead managers Morgans, NAB, and E&P Capital
Institutional Placement to Support Growth
Revolution Private Credit Income Trust (ASX – REV) has announced an institutional placement aiming to raise up to A$60 million through the issuance of approximately 30 million new units at an offer price of A$2.00 each. This price represents a slight discount to recent trading levels, reflecting a strategic move to attract wholesale and institutional investors. The proceeds from this placement will be directed into the Revolution Private Debt Fund II, which focuses on a diversified portfolio of senior secured corporate loans, asset-backed securities, and commercial real estate loans within Australia and New Zealand.
Focused Investment Strategy with Strong Risk Controls
The trust’s investment approach prioritises capital preservation and income generation through exposure to high-quality, secured loans. Notably, it excludes higher-risk segments such as property development and unsecured lending. The portfolio is diversified across three key sectors, with a strong emphasis on defensive industries and businesses demonstrating stable cash flows. This disciplined strategy is designed to withstand market cycles and mitigate credit and liquidity risks.
Attractive Yield Target and Performance Track Record
Revolution targets a return of the Reserve Bank of Australia (RBA) Cash Rate plus 4% per annum, net of fees and expenses. The current net yield to maturity stands at an estimated 7.83%, underscoring the trust’s ability to deliver attractive income relative to cash rates. Since its IPO in September 2025, the trust has demonstrated steady performance, with active returns exceeding the RBA Cash Rate benchmark over recent months.
Governance, Transparency, and Investor Alignment
In line with recent regulatory focus on private credit funds, Revolution Asset Management highlights its commitment to transparent fee structures, independent loan valuations, and equitable investor treatment. All loan-related fees are passed through to investors, and detailed portfolio reporting is provided monthly. The trust’s governance framework aims to ensure alignment of interests and maintain investor confidence in a sector where transparency has historically been a concern.
Placement Logistics and Market Implications
The placement opened on 10 February 2026 and closed on 11 February, with new units expected to be issued and commence trading in early March. Joint lead managers Morgans Financial, National Australia Bank, and E&P Capital facilitated the offer. New units will be eligible for distributions starting March 2026, though distribution payments remain at the discretion of the responsible entity. This capital raise positions the trust to capitalize on opportunities in the private credit market while maintaining ASX liquidity for investors.
Bottom Line?
This placement marks a pivotal step for Revolution Private Credit Income Trust to deepen its foothold in the private credit market, but investors should watch closely how the trust navigates evolving credit conditions and distribution sustainability.
Questions in the middle?
- Will the trust maintain its targeted net yield amid changing interest rate environments?
- How will the placement impact liquidity and trading dynamics of REV units on the ASX?
- What measures will Revolution take to manage potential credit risks in a cyclical economic phase?
