Australian alternative asset manager HMC Capital has entered the private credit sector with an AUD127.5m acquisition of Melbourne-based real estate fund manager Payton Capital, according to a report by the Australian Financial Review.
The deal, a combination of cash and stock, will be financed through a AUD100m institutional investor raise and a AUD30m share purchase plan, offering shares at $6.50 each. HMC also sold a 2% stake in its HomeCo Daily Needs REIT for AUD50m to support the acquisition.
Payton manages about AUD1.5bn in commercial real estate credit.
David Di Pilla, Founder, Group CEO, and Managing Director at HMC, described the opportunities in private credit as “too big to ignore”.
He added: “Ultimately, this comes down to the ability to do large complex transactions and to have the relationships to be able to get access to those transactions.
If you look at the history of HMC, it’s been built on doing the largest, most complex transactions in Australia – so this is a natural fit for our skill set.”
Alternative Credit Investor reported that the acquisition is the first step in HMC’s plans to establish an AUD5bn private credit asset management platform which will span real estate, corporate, mezzanine and infrastructure loans in the medium-term.
Source: Private Equity Wire
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