Launched in August 2020 with capital commitments of ~$65 million, WCCF1 was Wingate Corporate Investments' (WCI) first dedicated corporate private credit fund.
In August 2024, the final investment was fully repaid, crystallising net annualised returns of ~11.2% for investors (post all fees but pre-tax), exceeding the initial 10% target return. This net performance implies a ~10.1% margin over the average one-month bank bill swap rate during the applicable period.
WCCF1 was sector-agnostic, primarily targeting senior secured, mid-market opportunistic credit opportunities across Australia.
A Snapshot Of WCCF1’s Investments[1]
WCCF1 still holds equity warrants in a private business, which may provide additional upside in the future.
Looking forward
Looking ahead
We are preparing to launch our first evergreen, open-ended private credit fund – focussed on direct lending and structured credit – the Wingate Corporate Horizon Fund (Horizon). This fund will offer co-investors access to a diversified portfolio of high-quality corporate lending opportunities, targeting a return of 1-month BBSW + 6% p.a. (net of all fees and expenses).
Wingate Corporate Horizon Fund
The fund is grounded in our experience through our Corporate Credit funds. The key highlights are:
- Diversified fund: Wingate’s first open-ended fund dedicated to corporate private credit, leveraging our track record across direct lending and specialised finance investments
- Target return: 1-month BBSW + 6%+ p.a.([2]) net return (post all fees and expenses), equating to ~10.3% as at September 2024
- Seed portfolio: Access to up to $50m of seed portfolio assets held by existing Wingate funds, generating returns (net of all fees) of 10%+
- Proprietary deal flow: Access to unique opportunities through strong market relationships
- Differentiated expertise: Led by Managing Director Selwyn Schroeder, WCI has extensive experience in complex credit situations, ready to navigate the uncertain economic backdrop
- Attractive segment: Defensive asset class providing strong risk-adjusted returns and downside protection with lower volatility than public markets([3])
- Quarterly distributions: Realised net income with the option to reinvest
- Fees:25% p.a. management fee of the Fund's net asset value and a 20% performance fee on returns above BBSW + 4% p.a., subject to a high water mark. Additional fees may apply ([4]
- Alignment with Wingate: Significant investment from Wingate in the Fund
Notes
[1] Industry / Seniority weighted by Facility Limits. Borrower Type / Equity Warrant Participation weighted by number of Facilities.
[2] Based on a pre-tax target of 1m BBSW + 6% p.a. (net of fees and expenses). Horizon may not be successful in achieving these returns.
[3] Investments are still subject to risk. Please refer to the Risk Factors section of the IM for more detail.
[4] Please see the IM for further detail. Wingate and its affiliates may be entitled to deal establishment and arranger fees in respect of investments of Horizon. Such fees will be allocated 50% to Horizon for the benefit of the co-investors.