Global alternative asset manager, MA Financial has partnered with Humm Group’s asset finance platform, Flexicommercial, to acquire up to $1bn worth of its commercial asset finance loans via MA Financial’s private credit managed funds in a forward flow arrangement.
In a statement on 21 August, the Sydney-headquartered group also with a presence in China, Hong Kong, New Zealand, Singapore and the US, said the partnership arrangement was "an Australian first, giving MA Financial’s private credit funds access to a substantial pipeline of high quality, prime asset finance loans, leveraging the expertise of Flexicommercial".
The $1bn of commercial asset finance loans, including an initial seed pool of $500m, represent a meaningful portion of Flexicommercial’s origination volume during the initial term of the partnership, alongside its warehouse and term deal programs.
MA Financial’s head of credit investments and lending, Frank Danieli (pictured), said: “Our new strategic partnership with Flexicommercial is an innovative financing strategy and an advancement for Australia’s private credit industry.
"We have seen the power of co-lending programs globally and are seeking to introduce these opportunities to our local market. This arrangement allows us to access an attractive pipeline of prime asset finance deal flow, diversify MA Financial’s private credit portfolio and participate in the growth of the commercial asset finance sector for our managed funds.
He continued: “We have identified asset financing as an attractive lending space for some time. The rise of the broker channel is creating more options for borrowers and a more level playing field for non-bank financiers to provide customers lending solutions.
"We like sectors where banks are ceding market share and are no longer the most efficient provider of capital. We think there are compelling risk-adjusted returns available in these market gaps. This unique partnership structure with Flexicommercial is an effective way for us to capitalise on these thematics in asset finance for our managed funds.”
“Flexicommerical is one of the leading asset finance providers in Australia with a highly experienced, capable management team and a strong track record. This partnership enables them to focus on what they do best with additional capital.”
Under the partnership, MA Financial’s managed funds will finance the assets along with a global bank, while Flexicommercial will maintain servicing and other loan management responsibilities.
CEO of Flexicommerical, Stuart Grimshaw, said: “Our partnership with MA Financial offers a diversified funding platform with scale to accelerate growth in constrained markets. It’s a strategic opportunity that allows us to service our clients while diversifying our funding sources, creating capital flexibility between our warehouses, term programs and this strategic partnership, which is a ‘capital-lite’ structure.”
“We have worked closely with the team at MA Financial to deliver this new funding platform. As Frank has outlined this is a true strategic partnership and one that will add substantial value to our shareholders and MA Financial’s investors.”
The transaction was underpinned by a diversified pool of high-quality business critical equipment assets, originated, and serviced by a leader in the commercial asset finance sector, the group said.
The establishment of the forward flow arrangement also represented "the beginning of a long-term partnership between MA and Humm, with the potential to scale beyond the initial $500 million seed pool commitment".
MA Financial is a global alternative asset manager specialising in private credit, real estate and hospitality. The firm lends to property, corporate and specialty finance sectors and provides corporate advice.
MA Financial invests and manages $9.6bn on behalf of its clients (including over $4bn in private credit), is responsible for over $112bn in managed loans and has advised on over $120bn in advisory and equity capital market transactions.
The firm has a team of over 600 professionals across locations in Australia, China, Hong Kong, New Zealand, Singapore and the United States.
