Investors

Market dynamics and regulatory changes have seen the major Australian banks materially reduce their exposure to commercial property financing, resulting in a void in the lending market.

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.

Our commodity strategies focus on dislocations in global commodity markets, providing investors with access to unique investments in commodity markets that are not offered by traditional commodity investment vehicles.

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 has deep experience and a long history of managing equity strategies.

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.

Our infrastructure strategy focuses on identifying and delivering yield and capital appreciation potential for investors to access unique opportunities to invest both equity and debt in energy generations and associated infrastructure. 

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 has deep experience and a long history in structured credit.

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.