Revolution bets demise of hybrids will boost private credit demand
The fund manager, which controls $3 billion in assets, has filed regulatory paperwork for a new private credit vehicle.
Revolution Asset Management is betting an incoming ban on the sale of hybrid debt products to retail investors will unleash further demand for private credit as more money floods into the red hot asset class.
The Sydney-based private credit specialist, which manages more than $3 billion for institutional investors, super funds and family offices, has registered a new vehicle with the corporate regulator ASIC – the Revolution Private Credit Income Trust – according to paperwork viewed by Capital Brief.
Revolution managing director and chief investment officer Bob Sahota declined to comment on the investment vehicle on Tuesday, suggesting it was too early to discuss. But he said he expected APRA's controversial decision to shut down hybrids for retail investors by 2023 would boost demand for the much scrutinised private credit sector.
"If you look at what ASIC has done in outlawing hybrids to retail investors, there's approximately $40 billion of hybrids on issue that will be called and returned and there's an opportunity for income-type products to be in that space," he told Capital Brief.
