La Trobe Private Credit Fund (ASX: LF1) has delivered a robust inaugural interim report, posting $8.8 million profit and exceeding its income targets since listing in June 2025. The Fund’s diversified private credit portfolio and active capital management underpin its promising start.
- Inaugural interim profit of $8.8 million after tax
- Raised $300 million via oversubscribed IPO in June 2025
- Monthly distributions totaling 7.03 cents per unit, surpassing target yield
- Capital management includes off-market buy-backs totaling 6.85% of issued capital
- Portfolio split evenly between Australian and US private credit exposures
A Strong Market Debut
La Trobe Private Credit Fund (ASX: LF1) has marked its first reporting period with a solid financial performance, announcing an $8.8 million profit after tax for the seven-month period from its registration on 22 May 2025 through to 31 December 2025. The Fund, which commenced trading on the ASX on 27 June 2025 following an oversubscribed $300 million initial public offering, has quickly established itself as a noteworthy player in the listed private credit space.
With a basic earnings per unit of 5.95 cents and a net tangible asset (NTA) per unit of $1.99, LF1 has demonstrated its ability to generate durable income with low volatility, a key attraction for investors seeking stable returns in a fluctuating market environment.
Diversified Private Credit Strategy
The Fund’s portfolio is strategically allocated 50% to Australian private credit and 50% to the US Private Credit Fund, providing investors with a blend of domestic and international exposure. This diversification is designed to balance risk and return, leveraging La Trobe Financial’s longstanding expertise in credit markets.
Active allocation management allows the Fund to adjust its exposure dynamically in response to market conditions, aiming to preserve capital while delivering consistent income. The Fund’s investment in the US Private Credit Fund is managed via a related entity and includes exposure to middle-market private credit opportunities in the United States.
Capital Management and Investor Confidence
To support unit price stability and liquidity, the Responsible Entity has implemented a suite of capital management initiatives. These include two quarterly off-market buy-backs during the reporting period, which collectively repurchased 6.85% of issued capital at NTA prices. Additionally, an on-market buy-back program was announced to commence in November 2025, further underscoring the Fund’s commitment to managing market price deviations.
Monthly distributions have been consistently paid, totaling 7.03 cents per unit for the period, exceeding the Fund’s target yield of the Reserve Bank of Australia Official Cash Rate plus 3.25% per annum. All distributions were unfranked, reflecting the Fund’s income characteristics.
Governance and Transparency
The Fund is managed by La Trobe Financial Asset Management Limited, with oversight from an independent Compliance Committee. The interim financial report has been reviewed by Ernst & Young, who confirmed no independence concerns. The Fund’s structure and reporting aim to provide transparency and confidence to investors accessing private credit through a listed vehicle.
Looking Ahead
La Trobe Financial signals plans to expand its listed investment offerings in 2026, including strategies focused on Australian commercial real estate and global infrastructure. These initiatives suggest a broader ambition to provide diversified, income-oriented investment solutions aligned with long-term retirement planning needs.
LF1’s strong start sets a foundation for monitoring how private credit strategies perform within listed structures, especially as market conditions evolve and capital management programs continue to support unit price stability.
Bottom Line?
LF1’s inaugural results highlight the potential of listed private credit funds, but investors will watch closely how ongoing capital management and market dynamics shape future returns.
Questions in the middle?
- How will LF1’s on-market buy-back program impact liquidity and unit price in 2026?
- What risks could arise from the Fund’s significant exposure to US private credit markets?
- How might rising interest rates affect the Fund’s income and valuation going forward?