We orientate our core execution capability based on the opportunity set, in collaboration with the specific skillset of each strategic partner. We only move where we have expertise.
We have a strong history in Agricultural investments and provide investors with unique access to invest in Agriculture through tried and tested investment structures. This asset class also provides our broader portfolio with diversification and exposure to one of Australia’s largest sectors, while managing risks through our asset focused investment structures.
Our expertise in the sector allows us to enter structured financing arrangements, providing a unique platform to match our investors risk and return appetite.
The Merricks Capital Agriculture team focuses on building strong strategic partnerships within the sector and identifying opportunities for investment across a wide range of commodities, geographies, and transaction sizes.
We invest across the supply chain, from farming production through to food & fibre processing, storage, and other agricultural infrastructure.
The investment team considers a range of investment criteria, including the quality of the underlying assets; investment metrics such as IRR (target of 8%+), term to maturity (6-30 months) and conservative loan-to-valuation ratio (LVR); risk factors such as any defined exit strategy and adequate future cash flows; and measures of security including the level of equity invested, collateral security or personal guarantees from the sponsor.
Merricks Capital’s agricultural investment strategy is focused on investment around Hard Assets, analysing the value of the assets to provide a flexible credit solution that works for the agribusinesses we partner with.
While the investment process is inherently robust in nature and structured around strict risk and performance standards, it is flexible enough to adapt to changing market conditions so that our investors can take advantage of new opportunities as they arise.
This void and the resulting lack of loan competition has led to an increase in returns from senior lending, while the risks are manageable due to the strong structural demand for property and low levels of loan leverage.
The resulting dislocation has created some compelling investment opportunities which Merricks Capital has been pursuing these senior lending opportunities through the Partners Fund.
Merricks Capital has provided funding for a range of senior property loans including land subdivision, construction financing and bridging finance.
The investment team considers a range of investment criteria, including the quality of the underlying project; investment metrics such as IRR (target of 8+%), term to maturity (6-30 months) and conservative loan-to-valuation ratio (LVR); risk factors such as any defined exit strategy and adequate level of presale coverage; and measures of security including the level of equity invested, collateral security or personal guarantees from the sponsor.
Merricks Capital’s principals co-invest in the Partners Fund alongside our Investors, ensuring a powerful alignment of interests for all parties.
As global banks and commodity merchants reduce risk capital in commodity markets, Merricks Capital invests capital where it is most scarce, creating value and opportunities for investors.
We blend a unique skill set in global physical commodity trading and primary production with mature funds management infrastructure and decades of derivative market experience.
We maintain strong, long-term relationships with participants on both the supply and demand sides including agricultural producers, global commodity merchants, food companies, Asian vegetable oil refiners and freight and logistics companies.
Merricks Capital manages all investment exposures through a robust portfolio construction and risk management process seeking to generate consistent, risk adjusted, long-term returns with a focus on capital preservation.
Merricks Capital’s investment team is dedicated to finding the best-in-class companies in Agriculture, Commercial Real Estate and Infrastructure.
Merricks Capital has previously run over $1bn in Asian listed equities strategies.
The current focus of the investment team is private equity energy infrastructure.
We apply our macro-driven approach to organic idea generation and deep fundamental analysis of sectors and companies by employing Merricks Capital’s disciplined investment process and leveraging deep market relationships to identify compelling investment opportunities.
The Australian marketplace is evolving and has witnessed a significant transformation from traditional fossil fuel-based generation assets to wind and solar generation assets with the more recent emergence of newer alternative sources.
Merricks Capital sources opportunities to invest through its strategic relationships with developers such as BE Power Solutions who hold deep domain expertise in the renewables, alternative and traditional sectors.
Each investment is approved by the Merricks Capital Investment Committee and Credit Committee and aided by additional external advisors where appropriate.
The unique opportunities Merricks seeks to exploit include both grid-connected and behind the meter generation assets with careful consideration given to project risks and counterparty characteristics.
Investments may be structured as standalone investment vehicles and managed by Merricks Capital within a disciplined risk management framework to optimise investor yield and / or capital appreciation over the lifetime of the relevant asset.
Merricks Capital partners with reputable specialist operations and asset management service providers to deliver operating solutions to its infrastructure investments.
Merricks Capital’s investment team is dedicated to finding the best-in-class companies in Agriculture, Commercial Real Estate and Infrastructure, working with the companies and creating compelling investment opportunities for our investors and counterparts.
We have historically provided financing solutions through a wide range of structured credit arrangements, including syndicated loans, securitized and collateralized debt arrangements and hybrid securities to wholesale clients.