Why MA Financial is betting on marina assets despite a weakening economy
The alternative asset manager and private credit giant sees risks across discretionary sectors as interest rates rise. But it's still bullish on marinas.
Alternative asset manager MA Financial Group sees Australia's swelling private credit market and rising interest rates working together to create stress in the entertainment, leisure and travel sectors as budget conscious consumers are forced onto staple foods and stay-cations. But it's also sticking by a somewhat contrarian bet on a niche corner of the economy.
Joint-CEO and co-founder Chris Wyke spoke to Capital Brief on the sidelines of the UBS Australasia Conference in Sydney today about how the big banks' cautious approach to lending has presented both risks and opportunities for those looking to fill the gap.
MA Financial has $8.6 billion in assets under management and has been working in private credit for six years.
Wyke predicts that when the Reserve Bank of Australia's rate hikes finally bite into consumer spending it will affect companies in the entertainment, travel and leisure sectors. The RBA won't necessarily mind stressing companies, as it views that as a healthy realignment. But when consumers also can't pay their personal, car and home loans that the central bank should start to worry.
