The global asset manager announced on Thursday the launch of a more than $1 billion Australian real estate credit facility for institutional investors with global private equity giant Warburg Pincus, just hours after announcing a $1 billion strategic partnership with a subsidiary of non-bank lender Humm Group .

The deal with Warburg Pincus is aimed at providing institutional investors worldwide with unique access to the Australian real estate credit market, financing high-quality developers and residential property projects.

With an initial target of $1 billion in note commitments, MA Financial said the vehicle would aim to “help close the current funding shortfall in the Australian residential property market”.

Under the arrangement, MA Financial will sell debt investments in the facility to institutional investors, while Warburg Pincus will facilitate offers to certain Warburg Pincus funds that have indicated their intention to invest in bonds issued by the facility.

"We are very pleased to announce two major initiatives today, including the launch of a new institutional real estate lending facility with Warburg Pincus and the establishment of a strategic partnership with Humm Group," said joint CEOs Julian Biggins and Chris Wyke.

MA Financial's partnership with Humm will see the asset manager acquire up to $1 billion in commercial asset finance receivables originated by Humm's Flexicommercial division through its private managed credit funds.

Under the deal, funds managed by MA Financial will finance the assets with a global bank, leaving Flexicommercial to service and manage the loans.

The $1 billion in trade finance loans include an initial pool of $500 million. These loans represent a significant portion of Flexicommercial's initial volume during the initial term of the partnership, along with warehouse and term deal programs.

"This relationship is expected to significantly expand MA Financial's reach and continue to build on the strong foundations our teams have built over the past 15 years," Biggins and Wike said of the two deals Thursday.

Ready for the future

Also on Thursday, MA Financial said underlying business momentum continued into the first half of 2024, with underlying group revenue up 5% on the first half of 2023. and have reached $134.5 million.

Assets under management added 13 percent year-on-year to $9.7 billion at the end of June, while underlying EBITDA shrank 16 percent to $38.3 million amid increased costs due to strategic investment spending.

Core earnings per share (EPS) fell 27% in 1H23. to 11.1 cents, while statutory earnings per share were 22% lower at 8.4 cents.

Commenting on the results, Biggins and Wyke said: “Underlying earnings per share in 2H24 are expected to be significantly higher than 1H24 as MA Money transitions to a profitable monthly earnings contribution and our established businesses continue to grow.

"We believe the group is in great shape and poised to deliver strong earnings growth going forward."