Australia’s MA Financial Group Ltd said on Tuesday it bought credit asset manager Blue Elephant Capital Management to enter the U.S. credit market and that it will launch a fund to give its clients access to credit markets in the United States.
MA Financial said it will buy New York-based Blue Elephant for $5 million. The firm manages $184 million worth of private credit investments across specialty finance niches, including direct loans, asset-backed lending and receivables financing.
The deal will be earnings neutral this financial year, the Sydney-based diversified financial services firm said.
The two firms have been co-investing in the United States specialty credit market through a loan funding partnership and have been working together since 2021.
“There is substantial cultural alignment and shared investment philosophies between the MA Financial and Blue Elephant credit investing teams,” said MA Financial Joint-CEO Chris Wyke.
MA Financial will also launch a U.S.-based MA Global Private Credit Fund in June, providing its Australian and international investors with access to proprietary, specialist lending opportunities in the U.S. credit markets.
“The MA Global Private Credit Fund will provide our Australian and offshore investor base with access to investment strategies focused on specialist, proprietary lending opportunities in the U.S. credit markets,” Wyke said.
The new private credit fund will be managed by a team of people from Blue Elephant and MA Financial, the financial services firm said.
MA Financial, which had A$8 billion ($5.30 billion) in assets under management as of February, said it will also expand fund distribution capabilities in the United States.
Source : Deal Street Asia
