Phil King's Regal ignores the memes and joins the private credit stampede
Phil King has joined the wave of investors hurtling into one of the hottest asset classes in finance.
Talk of a ‘golden age of private credit’ has sparked many memes and much derision in 'fintwit' circles. But the scepticism about the asset class would appear to be lost on Australia’s fund managers.
On Monday Phil King's Regal Partners became the latest local fundie to rush into private credit, announcing its acquisition of Merricks Capital for $235 million in a cash and scrip deal. Merrick oversees $2.9 billion in private credit loans across the agriculture, infrastructure, commercial property and industrials sectors.
The move comes just one week after another ASX investment manager led by one of the market's big market personalities, David Di Pilla's HMC Capital, acquired $1.5 billion private credit manager Payton Capital for $127.5 million.
The acquisition will push Regal's total assets under management up by 24% from $12.2 billion to $15.1 billion. Regal's share price traded flat on Monday.
