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The asset manager has signed a strategic partnership to acquire up to $1 billion of commercial asset finance loans.
Global asset manager MA Financial has announced the acquisition of up to $1 billion of asset finance loans from Flexicommercial, Humm Group’s asset finance platform.
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In what is believed to be an Australian-first ‘co-lending’ arrangement, MA Financial will acquire the loans via its private credit managed funds, in a forward flow arrangement.
This arrangement will see MA Financial managed funds finance the assets with a global bank, leaving Flexicommercial responsible for servicing and loan management.
The $1 billion commercial finance loans include an initial seed pool of $500 million. These loans represent a significant portion of Flexicommercial’s origination volume during the initial term of the partnership, alongside warehouse and term deal programs.
Frank Danieli, MA Financial head of credit investments and lending, said: “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.
“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.”
Stuart Grimshaw, the CEO of Flexicommercial, said the partnership offered the group 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,” Grimshaw said.
“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 move comes as MA Financial – and its mortgage lending arm MA Money – continues to expand its loan offerings.
On Tuesday (20 August), MA Money announced the launch of its new residential large loan initiative, offering Prime home loans up to $5 million and Near Prime up to $3 million for qualified borrowers.
It includes Alt Doc options for self-employed customers (with an existing ABN for 12 months, six months’ GST registration, and one income verification document) and no investor loading.
Tim Lemon, MA Money state manager for NSW/Queensland/Victoria, said: “Since our launch almost two years ago, MA Money has consistently sought innovative ways to better serve our customers’ diverse lending needs.
“Our latest product initiative responds to a growing demand in the market for large loans, particularly among customers suited to our Near Prime product. We’ve developed a tailored solution to meet their unique needs.
“MA Money has the backing and the confidence in our ability to deliver the high-quality and flexibility that brokers and customers have come to expect from us. We couldn’t deliver unique product solutions without the support of our broker partners.
“MA Money’s Alt Doc options offer crucial flexibility to self-employed customers. We’re pleased to extend this support to those looking to purchase or refinance high value residential properties.”
[Related: MA Financial appoints CFO]
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