The primary objective of this new venture, as explained by Betashares CEO Alex Vynokur, is to democratise access to investment opportunities typically reserved for the world's largest investors. Over the past 15 years, Betashares has been instrumental in expanding access to various asset classes previously exclusive to institutional investors. The new division represents a strategic move to provide access to private assets, reinforcing the company's commitment to cost-effective and diversified wealth solutions.
Despite the increasing demand, Australia remains underrepresented in high-quality global investment options. Vynokur highlights a significant opportunity to fill this gap, thus enabling Australian investors and their advisers to improve portfolio returns through diversified private asset investments.
Marking a significant step, Betashares has partnered with US-based Cliffwater, a specialist in private markets. This collaboration will introduce Cliffwater’s renowned US private credit strategy as an AUD-hedged unlisted fund. This fund will be accessible on investment platforms for financial advisers and Betashares Direct for eligible wholesale investors in Australia.
Cliffwater’s strategy leverages its Corporate Lending Fund Platform to gain exposure to direct loans for US middle market companies. The platform utilises a multi-lender approach to build a highly selective portfolio, currently comprising nearly 4,000 loans in sectors such as IT, healthcare, and industrials, achieving an annual return of 9.63 per cent in US dollars since June 2019.
The partnership with Cliffwater will not only launch their private credit strategy in Australia but will also extend to other private market interval funds and Cliffwater’s flagship US$30 billion private credit fund. Stephen Nesbitt, Founder and CEO of Cliffwater, notes the considerable interest in their funds due to their performance and diversified, defensive strategies, even under varying market conditions.
Betashares plans to roll out its first private credit fund exposure by the end of the month, marking a significant milestone in its mission to enhance Australian investors' access to private market investments.
