MA Financial shares surge on strong private credit flows
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More news: Shares in MA Financial rose in early trading after the fund manager posted record first-half inflows off the back of strong private credit demand.
Shares were up 9.54% to $9.07 by 11:17am AEST.
During an investor call following the results, joint CEOs Julian Biggins and Chris Wyke said they expected strong private credit flows to continue.
“There is a difference between the listed market and the unlisted market as well… [and] the listed market for private credit was opened up for us in March,” they said.
“...I think having more channels for distribution is key to the business. We've opened up a number of those channels through this half year that gives broader access to equity.”
Wyke noted that private credit conditions were “pretty robust at the moment”. While the fund manager had seen an up tick in arrears within its asset backed portfolio and were watching credit quality carefully, the new financial year had seen those arrears come back in.
Real estate credit, he said, had been “pretty stable”.
“From a broader perspective, where we have chosen to invest and where we picked our conservative pockets and we are not seeing a walk up in any stress or watch list, assets, at this stage,” Wyke said.
MA Financial net profit tumbles but AUM rises on private credit demand
The news: MA Financial has announced a 43.7% decrease in statutory net profit after tax but a rise in assets under management (AUM) for the first half of FY25.
The numbers: The fund manager’s NPAT for the period was $7.6 million, lower compared to $13.5 million during the prior corresponding period. The fund manager said its profit was impacted by a planned one-off investment of around $13 million related to the acquisition of IP Generation and capital raising costs to establish the MA Credit Income Trust listed fund.
AUM was at $12.7 billion, up from $9.7 billion during the first half of FY24 as it posted record gross fund inflows of $1.5 billion, up 36% on 1H24.
MA Financial’s asset management underlying revenue jumped 10% to $92.2 million which was driven by demand for private credit funds. Underlying EBITDA was up 25% to $47.8 million.
The company also posted a 2024 interim dividend per share of 6 cents, in line with the previous year.
The context: MA Financial said its record inflows was also driven by demand for its private credit funds and there was growing momentum in flows into MA Redcape Hotel Fund.
What they said: Joint CEOs Julian Biggins and Chris Wyke said: "We are very pleased with the strong momentum witnessed right across our business in the first half of 2025.
"Our assets under management and loan books continue to grow rapidly. Declining interest rates provide a strong tailwind for most areas of our business.
"Underlying EPS in the second half of 2025 is expected to be materially higher than in the first half and we believe that the Group is in great shape to deliver strong earnings growth into the future."
The source: ASX
