MaxCap taps offshore insto appetite with USD-hedged note

MaxCap has launched a USD-hedged currency note that will invest in its flagship real estate credit vehicle, MaxCap Investment Trust (MIT), providing an accessible pathway for global institutional investors.

MaxCap said the note reflects growing internationalisation of Australian real estate credit as an institutional-grade asset class.

"We are seeing increased momentum with global investors allocating to Australian private credit, seeking compelling risk-adjusted returns and diversification away from other regions or asset classes," MaxCap chief executive Kylie Robb said.

"These investors are typically seeking first mortgage exposure, floating rate income, short loan durations, strong collateral and active portfolio management, which MIT provides."

The note offers institutional and wholesale investors access to a diversified portfolio of real estate credit available through MIT's two funds, First Mortgage or High Yield.

"It's positive to see institutional investors actively deploying capital in Australia. The market continues to be viewed as a safe haven, offering a well-documented residential housing undersupply, a stable regulatory environment and a robust credit market," MaxCap head of research Bruce Wan said.

"Australia combines the stability of an advanced economy with population growth more typical of emerging markets."

Wan added the product also taps into a broader global shift, as investors move away from a focus on capital growth towards more stable, income-generating assets.

"The structural undersupply in Australian housing, combined with the market's relatively low correlation to US and European cycles, gives international investors a meaningful diversification benefit alongside a compelling income profile," he said.

Robb added: "As allocations grow, manager selection has become an increasing priority. Institutional investors are favouring platforms with long-standing experience managing institutional capital into first mortgage real estate credit at scale, through market cycles, with strong governance and portfolio transparency."