Private credit
Debt financing provided by non-bank lenders to private companies, typically with negotiated bilateral terms. An alternative-asset sleeve in some NZ wholesale and select retail mandates.
Private credit is debt financing provided by non-bank lenders — credit-focused fund managers — to private companies, real-estate sponsors, or infrastructure projects. Loans are typically bilateral or club-financed rather than syndicated, with terms negotiated directly between borrower and lender. Senior secured, unitranche, and mezzanine are common sub-categories.
Private-credit mandates are a feature of institutional and wholesale NZ investing more than NZ retail PIE schemes, though some diversified retail funds carry a small private-credit allocation through underlying wholesale or offshore credit funds. Compared to listed corporate bonds, private credit typically offers higher coupon income in exchange for illiquidity (limited or no secondary market) and the manager's underwriting skill.
NZ retail funds with private-credit allocation disclose the underlying sub-fund and the maximum allocation in the SIPO. Liquidity terms — including any notice period or gate provision on redemptions — are detailed in the OMI.
Related terms
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SIPO
Statement of Investment Policy and Objectives (SIPO)
The fund-manager document setting out the fund's investment objectives, strategy, asset-allocation ranges, derivative use, hedging, rebalancing and exclusion rules — filed on FMA Disclose and binding on the manager.
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OMI
Other Material Information (OMI)
A supplementary FMA-required disclosure document containing material information about a fund or scheme — typically conflicts of interest, related-party transactions, fee waivers, auditor/trustee/custodian identities — that is not included in the PDS.
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liquidity-management
Liquidity management
The tools a fund manager uses to meet redemption requests in stressed markets: cash buffers, redemption gates, in-specie transfers, and dilution adjustments.