First-ranking tangible asset collateral on all loans
Rixon Income Fund
14 November 2022
Inception Date
$145.6M
FUM
11.67% p.a.
Yield
1.5% p.a. (excl. GST)
Management Fees
Monthly
Distribution
$50,000
Minimum Subscription
×
Rixon Income Fund
The Rixon Income Fund was launched in November 2022 and is managed by Rixon Capital Pty. Ltd. The Fund provides asset-backed, senior secured lending to Australian SMEs seeking non-dilutionary debt funding. It operates as a direct lender, targeting the underbanked $2M-$20M SME lending segment. The Fund lends on a first-ranking senior secured basis, with all loans requiring real asset security. Borrowers are required to service their interest expense monthly in cash.
Investment Objective
The Fund delivers bespoke credit solutions to Australian SMEs. Rixon’s strategy is focused on capital preservation and delivering investors an attractive monthly cash yield. The Fund aims to generate a return in excess of its performance benchmark, RBA Cash Rate + 6.0% p.a.
Key Features
The Rixon Income Fund offers unique advantages for investors seeking steady returns
Senior secured position over business assets, including receivables, inventory, equipment and property
Monthly cash interest servicing requirements that provide early warning indicators
Access to an underbanked niche market ($2M-$20M) that is too small for large institutional funds
Short loan tenures (up to 3 years) that mitigate economic cycle risks
Institutional-grade underwriting expertise applied to the SME sector
No fund leverage and conservative LVR reducing portfolio risk
Asset-backed structure that aligns with the objectives of stability, reliable income and lower risk
Performance Track Record
Data-driven investment decisions backed by comprehensive market analysis
| Period | Fund | RBA Cash | Benchmark | Excess |
|---|---|---|---|---|
| 1 month | 0.94% | 0.30% | 0.79% | 0.15% |
| 3 months | 2.82% | 0.93% | 2.44% | 0.38% |
| 6 months | 5.83% | 1.91% | 4.92% | 0.91% |
| 1 year | 11.67% | 4.04% | 10.04% | 1.63% |
| inception(p.a.) | 11.82% | 4.06% | 10.14% | 1.68% |
Returns shown reflect full monthly cash distributions received by investors (non-compounded, without reinvestment assumption). Source: Rixon Capital, Inception: Nov ’22, Returns are net of fees and costs
Investment Details
| Features | Rixon Investment Fund |
|---|---|
| Target Return | Pre-tax cash return of 10% to 12% p.a. (net of fees and costs) |
| 1-Year Return | 11.67% |
| Income distribution | Monthly |
| Minimum Investment | $50,000 |
| Investment Universe | The Fund primarily targets loans ranging from $2M to $20M, providing high-quality borrowers with the funding they need to grow while delivering investors attractive, risk-adjusted returns. |
| Benchmark | RBA Cash Rate + 6.0% p.a. |
Investment Expertise
An experienced team drives the investment strategy with extensive expertise in private credit
The Rixon Income Fund’s investment expertise centres on capturing scarcity premiums within structurally underbanked market segments rather than competing for risk premiums in commoditised lending markets. The Fund generates investor returns through interest income from bilateral loan agreements, operating as a price maker in negotiations due to the undersupplied nature of its target market.
The Fund’s core thesis recognises distinct segmentation within Australia’s private lending market. Borrowers seeking facilities exceeding $40M can access traditional banking and institutional markets. The $20M-$40M segment is well-serviced by large private credit funds with assets under management exceeding $500M. However, borrowers requiring sub-$20M facilities face material undersupply, as this loan size represents sub-scale opportunities for larger institutional funds.
Within the sub-$20M segment, existing debt providers are predominantly either equity-focused niche managers seeking warrant enhancements or high-net-worth investors who are unable to provide dependable long-term funding solutions. Rixon positions itself as the only institutional, non-dilutionary capital provider in this space, creating sustainable competitive advantage.
The investment team comprises experienced financial services professionals with backgrounds spanning public and private markets, M&A, equity research and private credit. The average industry experience of each team member is 14 years.
| Name | Title | Industry Experience | Investment Committee/Team |
|---|---|---|---|
| Patrick William | Managing Director | 19 years | Investment Team |
| Daniel Neilson | Director Head of Private Credit | 12 years | Investment Team |
| Shrikaanth Balasubramaniam | Director Credit | 14 years | Investment Team |
| Hessan Shah | Manager Credit | 9 years | Investment Team |
| John-Paul Roberts | Analyst Credit | 1 year | Investment Team |
| Alan Butterfield | Lead Independent Investment Committee Member | 34 years | Investment Committee |
| Justin Roberts | Independent Investment Committee Member | 19 years | Investment Committee |
| Blair Murphy | Investment Committee Member | 4 years | Investment Committee |
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