Alceon Debt Income Fund awarded 4-star SQM Research rating
The Property Tribune
The Property Tribune
Sep 08, 2022
Financier and multi-strategy alternative investment manager Alceon has received a 4-star from SQM Research for its retail private debt fund, the Alceon Debt Income Fund.
The fund holds loans that are primarily secured by registered first ranking mortgages held over Australian property, mostly along the east coast.
These loans finance a mix of real estate development, construction and ownership. The fund only invests in senior and second ranking loans that are secured, with a maximum loan-to-valuation ratio (LVR) of 65%.
As of 30 June Alceon has a loan portfolio of $2 billion, with the Alceon Debt Income Fund doubling in size over FY22.
The fund has generated a net return of 8.18% per annum since its net inception to 31 July 2022, aiming to attract yields of 5% to 7%.
“The Alceon Debt Income Fund differentiates from others in the segment by offering an institutional grade fund with a core focus on short duration, secured real estate debt,” said Grant Atchison, Head of Real Estate Funds Management at Alceon.
SQM Research noted “The Alceon Group has more than a 10-year track record in the Real Estate/Investments industry and has about $4.3 billion in FUM and about 65 staff members. The Firm has a well-resourced and highly experienced investment team.”
“The investment/lending process is thorough and robust. Significant due diligence on investments is undertaken, with independent property and construction industry experts engaged along the investment pipeline. A series of monitoring protocols are in place to mitigate default risk.” Grant Atchison, Head of Real Estate Funds Management at Alceon.
Mr. Atchison noted that Alceon and market commentators estimate that non-banking lending in the Australian residential and construction sectors is between $20 billion and $50 billion.
“The fund allows advisers to access this growing institutional asset class that benefits investor portfolios with regular distributions and downside protection during volatile periods.”
This article is issued by The Melbourne Securities Corporation Limited ACN 160 326 545, AFSL 428 289) (MSC) and has been prepared by Alceon Real Asset Management (ABN 99 627 059 723, corporate authorised representative (no. 345692 of Alceon Group Pty Limited (ABN 63 122 365 986, AFSL 345 692)) (ARAM) as the investment manager of the Alceon Debt Income Fund (Fund). MSC is the responsible entity and the issuer of units in the Fund. It is general information only and is not intended to provide you with financial advice and has been prepared without taking into account your objectives, financial situation or needs. You should consider the product disclosure statement (PDS), prior to making any investment decisions. The PDS and target market determination (TMD) can be obtained for free by visiting our website www.alceon.com.au. If you require financial advice that takes into account your personal objectives, financial situation or needs, you should consult your licensed or authorised financial adviser. This information is only as current as the date indicated, and may be superseded by subsequent market events or for other reasons. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. All investments contain risk and may lose value.
Neither ARAM nor MSC guarantees the performance of any fund or the return of an investor’s capital and do not give any representation or warranty as to the reliability or accuracy of the information contained in this information.
IF PERFORMANCE FIGURES ARE INCLUDED: Total returns shown for the Alceon Debt Income Fund have been calculated using exit prices after taking into account all of MSC’s ongoing fees and assuming reinvestment of distributions. No allowance has been made for taxation. Past performance is not indicative of future performance.
IF FORECASTS ARE INCLUDED: Any opinions, forecasts, estimates or projections reflect judgments of ARAM as at the date of this informationand are subject to change without notice. Rates of return cannot be guaranteed and any forecasts, estimates or projections as to future returns should not be relied on, as they are based on assumptions which may or may not ultimately be correct. Actual returns could differ significantly from any forecasts, estimates or projections provided. Past performance is not a reliable indicator of future performance.