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Sydney boutique to buy a slice of Investec assets

A Sydney private debt manager will acquire a portion of South African Investec's local debt portfolio, as the latter exits Australia.

Metrics Credit Partners has reached an agreement to buy Investec's local corporate and acquisition finance (CAF) loan portfolio.

The acquired portfolio includes leveraged finance and fund finance loans to corporates and funds across business services, entertainment, retail, childcare, healthcare, mining services and financial services in Australia.

MCP is understood to be acquiring about $1.2 billion in assets from the transaction, and already has about $6.5 billion in total assets under management.

The transaction does not include Investec's resource finance, and project and infrastructure finance loan portfolios.

"We are pleased with this development as it will ensure local corporates continue to be served by a highly regarded local lender," said Investec Australia chief executive and country head Milton Samios.

"It is a high-quality portfolio, which is a testament to the Investec approach to credit selection and risk management as well as to the Investec Corporate and Acquisition Finance Team (CAF), led by Simon Beissel, which has built this business over the past 10 years."

Metrics managing partner Andrew Lockhart said: "This is a great outcome for investors because it will add to the diversity and liquidity across our funds and lead to an uplift in expected total returns. The credit quality of this portfolio is sound and provides a great opportunity to expand our relationship with Australian corporate borrowers."

In December, Investec said it would withdraw from the Australian market after 23 years to focus on core markets of the UK and South Africa. It employed 98 staff.

The corporate advisory business will be spun out as a successor entity owned by the senior leadership team. Investec Australia recently sold its property funds management business, and in 2014 sold its professional finance business to Bank of Queensland.

Read more: Investec AustraliaAndrew LockhartMetrics Credit PartnersMilton SamiosSimon Beissel