Kapstream Capital pounds the pavement with new fund

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Prospective investors are being told warehousing is a growing part of the local private debt market - and Kapstream would be the first to set up a dedicated fund to make the most of the opportunity.

Street Talk understands the fixed income house has been meeting with institutional investors and large private banks to firm up support for a new fund that would invest solely in pre-public securitisation transactions. Perpetual’s wealth unit is seeding the venture, and Kapstream is now seeking other foundational investors.

Portfolio managers Dylan Bourke and Mark Bayley will spearhead the new strategy. Prospective investors are being told warehousing is a growing part of the local private debt market – and Kapstream would be the first to set up a dedicated fund to make the most of the opportunity. “Barriers to entry are high, and established non-bank lenders who make up the most attractive part of the warehouse origination space typically favour a far smaller number of trusted financing partners with whom they can develop close relationships”, Bourke told Street Talk.

“And, in return, a pricing premium is available, which passes straight through to end investors, making returns highly conducive, notably when compared to the public securitised sector and other types of private debt.”Kapstream was founded in 2006 by Kumar Palghat and Nick Maroutsos, both of whom worked for PIMCO, with Challenger as a minority shareholder. About nine years into its life, the business was acquired by Janus Henderson.

 

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