MA Financial Group Limited ("MA") (ASX: MAF) an ASX-listed global alternative asset manager with over US $6.8 billion AUM, today announced the launch of the MA Specialty Credit Income Fund (SCISX) ("the Fund") a continuously offered, closed-end interval fund registered under the Investment Company Act of 1940.
The Fund invests in a differentiated portfolio of US private credit assets, spanning asset-based lending, specialty finance, and co-lending opportunities, originated directly by MA's seasoned team of investment professionals. The Fund aims to deliver attractive risk-adjusted returns through various market cycles while providing daily pricing, monthly income distributions and quarterly repurchases. "We are excited to deliver a seasoned strategy with direct sourcing and origination capabilities and a proven investment process to a wider range of investors with this new Fund," said MA's Ashees Jain.
The Fund is managed by MA Asset Management, the US business of MA Financial Group, established in May 2023 through the acquisition of Blue Elephant Capital Management expanding MA's global private credit platform into North America. Blue Elephant was founded in 2012 and led by J.P. Marra, Ashees Jain and Kent MacWilliams. The acquisition provided MA's global private credit business with significant domain expertise in asset-based finance in the US. Mr. Marra is Head of US Asset Management; Mr. Jain is US Chief Investment Officer and Mr. MacWilliams is Head of US Credit Investments.
Asset-based lending is a growing segment within private credit, secured by diversified pools of loans, assets, or receivables, typically with an originator or finance company. "We believe access to a portfolio of private asset-based lending and specialty credit opportunities offers investors a genuine fixed income alternative, benefitting from the inherent diversification, portfolio granularity, and attractive collateral features that this asset class can deliver while providing diversification through a broader set of collateralized investment opportunities," said Mr. Marra.
Today's interval fund launch marks the first investment vehicle offered by MA in North America. "This marks an important milestone for our global credit platform, which represents more than US $4.3 billion in assets," said MA's Head of Global Credit Solutions Frank Danieli. "Today's announcement illustrates the firm's commitment to providing exceptional investment solutions for our global client base."
The MA Specialty Credit Income Fund is distributed by Distribution Services, LLC through ACA Global.
IMPORTANT RISK DISCLOSURES OF MA SPECIALTY CREDIT INCOME FUND ("THE FUND"):
Investors should carefully consider the Fund's investment objectives, risks, charges, and expenses before investing. A Prospectus with this and other important information about the Fund may be obtained by calling 844-994-4822. Investors should read it carefully before investing. An investment in the Fund is subject to a high degree of risk, including the possible loss of the principal amount invested.
The Fund is a "non-diversified" Fund under the Investment Company Act of 1940. Changes in the market value of a single holding may cause a greater fluctuation in the Fund's net asset value than in a "diversified" fund. The Fund is not intended as a complete investment program but instead as a way to help investors diversify into credit related investments. Diversification does not ensure a profit or guarantee against a loss. The Fund is a newly organized, non-diversified, closed-end investment management company and it has a limited operating history. The Fund may not achieve its investment objective and the value of an investment in the Fund could decline substantially.
These risks include but are not limited to those outlined below. The Fund should be considered an Illiquid investment and is only appropriate for shareholders who can tolerate a high degree of risk. The Fund is not suitable for investors that require liquidity, other than through the Fund's repurchase policy. Past performance is not indicative of future results. Credit entails special risks, including interest rate, inflation, prepayment, bankruptcy, default and various other economic risks. Please see the prospectus for all risks related to the Fund. The Fund does not intend to list its shares on any securities exchange during the offering period, and a secondary market in the shares is not expected to develop. There is no guarantee that shareholders will be able to sell all of their tendered shares during a quarterly repurchase offer. The Fund is not suitable for investors that require liquidity, other than through the Fund's repurchase policy. You should not expect to be able to sell your shares other than through the Fund's repurchase policy, regardless of how the Fund performs.
The information herein is not intended to provide, and should not be relied upon for, accounting, legal or tax advice, or investment recommendations. You should consult your accounting, legal, tax or other advisors about the matters discussed herein.
MA Asset Management, LLC is the Advisor to the MA Specialty Credit Income Fund. MA Specialty Credit Income Fund is distributed by Distribution Services, LLC through ACA Global, Three Canal Plaza, Suite 100, Portland ME, 04101. Distribution Services, LLC and MA Asset Management are unaffiliated.
