HMC Capital Establishes Private Credit Platform & Equity Raising

HMC Capital Limited (ASX: HMC) today announces key initiatives which support its strategy to establish a $5bn+ diversified Private Credit asset management platform over the medium-term spanning real estate, corporate, mezzanine and infrastructure loans. The first step in this strategy includes the acquisition of Commercial Real Estate Private Credit fund manager, Payton Capital Limited (Payton) and the appointment of Matt Lancaster as Chair of HMC’s Private Credit platform.

To support the acquisition, HMC is undertaking a $100m fully underwritten institutional placement and a non-underwritten Security Purchase Plan to raise up to approximately $30m (SPP). HMC has also realised $50m from an on-market sell-down of its co-investment in the HomeCo Daily Needs REIT (ASX: HDN) from 14.0% to 12.1%. The package of funding measures are consistent with HMC’s strategy to maintain a strong balance sheet with no core debt and actively recycle capital to over time achieve group wide ROE of 20%+.

HMC Capital Managing Director and CEO, David Di Pilla said “We see the growth opportunity in this sector as too big to ignore with private credit asset managers playing an increasingly larger role in Australia’s $1.2 trillion credit market. The acquisition of Payton provides HMC with an attractive entry into the private credit sector via a highly profitable and scalable platform. This will enable HMC to take advantage of attractive industry fundamentals and investor appetite for CRE private credit.”