Sydney, 2 February 2022 – MAXCAP OPERATIONAL DUE DILIGENCE (ODD) RATING UPGRADED FROM ‘VERY STRONG’ TO ‘SUPERIOR.’
Foresight Analytics has upgraded its Operational Due Diligence Rating (ODD) for MaxCap Group Pty Ltd (MaxCap) from ‘Very Strong’ to ‘Superior’. This has been primarily driven by the recent partial acquisition of MaxCap by Apollo Global Management. This rating reflects an ongoing investment in MaxCap’s human resources, governance arrangements and risk and compliance practices. We expect MaxCap will retain its existing operations, strong risk and compliance frameworks and entrepreneurial spirit. Its experienced management team and staff across all key business functions will be bolstered by Apollo’s worldwide ecosystem of investment professionals and experienced directors and senior management.
A ‘SUPERIOR’ ODD rating is the highest available rating from Foresight Analytics’ 5-point ODD Rating Scale; it reflects the superior capacity of an operating party to perform its operational role and assist the Fund in meeting financial obligations.
Foresight Analytics analyst, Natasha Quirk, said, “the affirmed ‘Superior’ rating is a positive reflection on the management of 7-key operational risk factors at MaxCap, the resilience of the Fund throughout the pandemic and ongoing initiatives to deliver best of breed services to clients.
Our Operational Due Diligence Rating of MaxCap included a review and rating of MaxCap’s operational risk factors and the impact of the Apollo Global Management deal. The combination of the weighted rating of these factors underlies MaxCap’s ‘Superior’ overall Operational Due Diligence Rating. Since commencing operations in 2007, MaxCap has maintained an impeccable investment management record and has not sustained any losses on its lending and investment management activities.
The outlook for MaxCap involves strong opportunities for further growth within the commercial real estate (CRE) lending sector in Australia and New Zealand, with a funding gap between CRE lending requirements and major bank capacities in this respect. MaxCap is expected to maintain its market-leading position in this space. We also expect MaxCap to continue building on its track record of strong financial performance, which reflects its strategic focus on dealing with top-tier sponsors and assets.
Foresight Analytics has considered the operational and financial profiles of the consolidated MaxCap group, including its key operating companies, MaxCap Group Pty. Ltd. and MaxCap Investment Management Pty. Ltd.
The full report is available to registered uses of Foresight 360. digital platform
Find out more about Foresight Analytics’ Operational Due Diligence by visitingwww.foresight-analytics.com.
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About Foresight Analytics’ Operational Due Diligence Rating (ODD Rating)
An Operational Due Diligence Rating assesses the capacity of an operating entity, special-purpose vehicle, or asset (collectively “operating party”) to effectively undertake its defined role of managing the operational risks relating to a pool of financial or physical assets. The ability of an operating party to carry out its role, be it in a superior, adequate, or poor manner, ultimately will have a bearing on the performance of the pool of assets. The overall ODD Ratings assigned by Foresight Analytics is underpinned by 7 risk factors – Ownership, Management talent, Governance, Risk & Compliance, Asset & Data security, Systems & Technology and Financial agility.
The assessment covers operational responsibilities and oversight undertaken for a pool of assets retained by the owner, or alternatively a pool of assets that underlie a debt issue or managed fund. The assessment addresses how much the operating party enhances or potentially detracts from the ability of the asset pool to pay interest and principal on a specific security as and when due, or the fund’s ability to distribute income according to the Product Disclosure Statement (PDS). It should be noted that operational risks generally exist in addition to credit, market, and liquidity risks.
Foresight Analytics Operational Due Diligence Rating (ODD Rating) Scale & Definitions
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.