Strategies

New Zealand Direct Lending

PCG Diversified New Zealand Private Debt Fund (NZPDF) 

https://www.morningstar.com.au/investments/security/fund/25822

  • A New Zealand PIE (Portfolio Investment Entity).
  • NZPDF is a wholesale, open-ended fund that provides investors access to senior secured direct lending exposure.
  • NZPDF is managed by New Zealand Private Debt Management Limited (company number 8132591, NZBN 9429048716864) (“NZPDML) a 100% subsidiary of PCG. 
Fund Features
Structure An open-ended, Inland Revenue approved, PIE
Valuations Weekly
PIE Fund Inception 28 March 2022 and first investors joined during May 2022
Target return OCR + 4% (net of fees) with 100% of assets structured on a floating rate
Distributions Monthly. 100% of income generated on fund assets accrues to the fund. PCG applies all origination fees and other remuneration from borrowers to investors
Fees 0.75% Management Fee
Currency The fund and its assets are NZD denominated
Trustee & Custodian Public Trust
Fund Administrator Adminis
Fund Auditor EY

Fund Features

  • Floating Base Rate

    Our private market floating rate asset strategy creates a differentiated risk reward profile compared to traditional public market credit exposures. This helps spread the risk for investors in their pursuit for yield and in reducing asset price volatility. 

  • Access to Information

    Private markets provide lenders with highly differentiated information and borrower access relative to public markets. In private markets, lenders specify the due diligence process, information set and ongoing reporting requirements, and develop direct management and equity relationships and access. 

  • Senior Security over all Borrower Assets

    Loan security on the borrower, financial performance covenants, detailed reporting packages and tailored documentation are based off market standards. These protections are designed to reduce the risk of default and maximise recoveries on the underlying assets in the portfolio. As the senior lender, our claims rank ahead of all other creditors.

  • Diversification

    Our diversification oriented strategy targets a portfolio of between 25 – 35 individual assets per fund. Maximum concentration limits apply to sectors and borrowers to preserve balance and de-correlate risk.

  • Borrowers & Management with a Proven Track Record

    We back companies with a proven track record and stable relationships with a diverse customer base. Loans are typically to support strategic and growth-related opportunities. These include acquisitions, capital expenditure and other expansion-based events. The fund does not lend to property developers, venture, start up or turn around businesses.