AltFi Income Fund
The Altor AltFi Income Fund specialises in a diversified portfolio of private credit to SMEs with a target distribution of 10% p.a. paid quarterly.
Mandate & investment strategy
The Fund is a return maximising private credit strategy with a focus on senior secured loans protecting downside while offering potential upside through attaching equity instruments. The Fund employs an extensive investment process that align with the Fund’s mandate and Altor’s philosophy. Rigorous qualitative and quantitative borrower due diligence covers key areas of credit investment that the investment team have built over extensive learnings and investment cycles.
The Fund works with each borrower’s management and board to present a debt structure that aligns with their needs. Further, there are several key structuring elements considered in each facility to enhance capital preservation characteristics and deliver a strong risk return profile.
Open-ended, unlisted unit trust
Style and risk profile
To provide investors with a return-maximising fixed income strategy via private credit investments
We have a return maximising strategy in micro-cap and small cap investing and nurture strong relationships while securing access to exclusive opportunities
Target return of +10% p.a. paid quarterly
Value add to core investments
Strong and proven track record
Altor use a proprietary investment process covering 5 core investment pillars
1. Origination & Screening
- The investment team sources investment opportunities through a range of channels including: Company relationships, industry contacts, screening of public and private companies & target sectors (macro driven).
- Private equity screening is undertaken on all opportunities that are originated to provide a high-level assessment of a prospective investment opportunity. The screening tool includes a high-level assessment of the following aspects: 1. Strength of management team and shareholder alignment 2. Industry analysis 3. Economic moat assessment 4. Financial strength
2. Due Diligence
- Quantitative due diligence
- Financial due diligence
- Serviceability assessment
- Coverage and security assessment
- Risk matrix
- Strong focus on potential risks of the lend so the Fund is able to structure a facility that protects the downside.
- Providing a structure that best suits the investee company’s needs but also meets the Fund’s risk-return requirements which can be enhanced through loan features.
- Opportunity is presented to the investment committee for deliberation.
- Third party advisors are engaged to conduct legal due diligence, and additional financial due diligence where necessary.
5. Value-Add & Ongoing Monitoring
- The Manager seeks to mitigate risk post-transaction through direct and regular contact with board and management, access to information on an ongoing basis which includes the monthly testing of covenants, and ensuring timely payment of interest and principal.
- Leveraging the diverse experience of the Altor team to provide additional value to reduce credit risk and increase the value of any attaching equity-like instruments the Fund has.
Invest with us today
We’re employee owned, alternative asset specialists and invest alongside our clients.
The “tick logo” is provided by Australian Fund Monitors Pty Ltd (ACN 122226724, AFSL 324476) and is based on the FACTORS Report that was prepared in accordance with ASIC’s RG79 and contains general financial advice for wholesale and sophisticated investors and AFSL licensees. Recipients should consider their own financial circumstances and objectives prior to making any investment decision. No part of the report may be reproduced without permission. The content is updated monthly and only the current version should be used. For further information on the FACTORS research process please visit www.fundmonitors.com. Past returns do not indicate future performance.