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MA Financial Group has teamed up with Humm Group's asset finance platform, Flexicommercial, to launch a co-lending initiative valued at up to $1 billion. This marks the first such deal in Australia, employing a forward flow arrangement through MA Financial’s private credit managed funds.
The initiative gives MA Financial's funds unprecedented access to a substantial portfolio of prime asset finance loans, leveraging Flexicommercial’s expertise in the sector. The arrangement begins with a substantial $500 million seed pool, which represents a significant part of Flexicommercial's loan originations for the term.
“Our new strategic partnership with Flexicommercial is an innovative financing strategy and an advancement for Australia’s private credit industry. This arrangement allows us to access an attractive pipeline of prime asset finance deal flow, diversify MA Financial’s private credit portfolio and participate in the growth of the commercial asset finance sector for our managed funds," said Frank Danieli, head of credit investments and lending at MA Financial.
The partnership strategy emerges as banks recede from certain market segments, according to Danieli, who sees a beneficial environment for non-bank financiers to step in with competitive lending solutions.
Under this agreement, the financing of the assets will be shared between MA Financial’s managed funds and a global bank, while Flexicommercial will continue to handle the servicing of the loans and other management responsibilities.
“Our partnership with MA Financial offers a diversified funding platform with scale to accelerate growth in constrained markets. It’s a strategic opportunity that allows us to service our clients while diversifying our funding sources, creating capital flexibility between our warehouses, term programs and this strategic partnership, which is a ‘capital-lite’ structure,” Flexicommercial CEO Stuart Grimshaw said.
This collaboration is expected to foster a long-term relationship between MA Financial and Humm, with potential future expansions beyond the initial commitment.
