Merricks Capital Agriculture Credit Fund Portfolio and Market Update – September 2023

The Merricks Capital Agriculture Credit Fund (the Fund) returned 0.9%* in September and 10.0%* on an annualised basis since inception.

One loan repaid during the month, an 8.4% allocation to the Fund secured against a large-scale dairy farm aggregation in north-west Tasmania. Settled in August 2021, the loan recapitalised the business to allow for structured property sales maximising the borrower’s equity. The loan was fully serviced for its duration and the investor return was 8.9%.

Across the Fund’s target asset sectors the opportunity pipeline increased by $175m during September. We’re seeing increased opportunities to lend against mixed farming assets, cattle abattoirs and large-scale rural property acquisitions that have accredited carbon offset units. Due diligence continued across $150m of new loan investments with a weighted average LVR of 56% and an investor IRR 11.0%. We continue to be highly selective around capital deployment, with funding demand high.

*These returns are stated net of fees and costs