Sydney, 29 March 2022 – Foresight Analytics reaffirms MaxCap CRE Debt Fund 3 Investment Rating
Foresight Analytics has completed a ratings assessment of the MaxCap CRE Debt Fund 3 (the Fund) and has reaffirmed an investment rating of SUPERIOR. The Fund was also assigned a Foresight Product Complexity Indicator of COMPLEX.
The Fund is managed by MaxCap Investment Management Pty Ltd (MaxCap), a subsidiary of MaxCap Group Pty Ltd, an Australian-based specialist commercial real estate (CRE) investment manager. In September 2021, MaxCap, previously 100% owned by its founding partners, Wayne Lasky (Executive Chairman) and Brae Sokolski (Executive Director), announced the sale of up to 50% of the company to clients managed by affiliates of Apollo Global Management (Apollo). Apollo is a global alternative asset manager with ~USD498billion in AUM (as at 31 December 2021), including $350 billion in its yield-focused Credit business. As part of the integration of the two companies, Apollo now has representatives on MaxCap’s Board and key committees. Excluding the banks, MaxCap has one of the largest CRE debt portfolios in Australia.
A SUPERIOR investment rating reflects the highest level of confidence that the Fund can deliver a risk-adjusted return in line with its investment objectives. The Investment Manager for this strategy employs a well-defined and rigorous process. A complexity indicator of COMPLEX indicates that the underlying assets require specialist investment skills to acquire and to monitor. In addition, investment in this Fund is effectively illiquid and investors should have a good understanding of the term and characteristics of the distributions from this type of fund.
The Fund invests in senior and junior loans within the CRE sector, primarily focussed on residential and mixed use ‘transitional’ assets, for example land that is being developed and residual stock, with medium-sized loans of $10 to $25 million. The aim of the Fund is to provide a well-diversified portfolio of loans while exercising rigorous due diligence to mitigate and control downside risk.
Foresight Analytics’ analyst, Natasha Quirk, says “The Superior rating is supported by the by the fact that MaxCap has maintained its track record of zero losses throughout the COVID crisis. Its recent deal with Apollo Global Management acquiring up to a 50% stake in MaxCap has only served to strengthen its financial and strategic position. It will allow MaxCap to continue its strong growth, and aid investors through the origination of even higher quality investments, allowing for more choice and opportunity for yield”. She added “We believe the Fund is very well placed to continue to provide quality CRE debt exposure for long-term investors seeking superior risk-adjusted returns”.
The full report is available to registered users of the Foresight 360 digital research platform
Find out more about Foresight Analytics’ Investment Ratings by visiting www.foresight-analytics.com.
– – END – –
About Foresight Analytics
Foresight Analytics, an independent Sydney based firm, provides investment diligence, data analytics, and advisory solutions to leading investment management companies, superannuation funds and wealth groups across the Asia Pacific. Foresight’s innovative, evidence-based approach blends both human and forensic insights to provide a range of analytical, predictive and market intelligence solutions to investors. Foresight Analytics was founded in 2015 by Jay Kumar, a former executive of Morningstar, Optimix Investment Management, ANZ Wealth & Private Bank and the Reserve Bank of Fiji.
Foresight’s fiduciary solutions include Diligence Services (Investment, Operational, ESG & Risk Diligence), Data Analytics and Asset Consulting. Foresight’s fund strategy solutions include Data Analytics for asset managers, Fund Strategy Benchmarking Solutions and Strategic Research.