Msquared Capital expands lending network

LENDER Msquared Capital has joined the Australian Finance Group’s (AFG) lending panel, as the aggregator expands its private credit offering for brokers and their clients.

The new partnership will see Msquared Capital provide its bespoke private lending solutions to the fast-growing market in Australia and enable the private lender to broaden the opportunities it provides for its investors and meet demand for high calibre mortgage secured investments.

“We are increasingly seeing borrowers fall outside traditional lending criteria or looking for short-term capital solutions that the banks can’t provide. Sophisticated brokers are looking to the private credit market to fill these gaps,” Michael Volkiene, general manager loan origination and credit at Msquared Capital.

“The partnership with AFG allows us to work closely with their broker network to deliver on opportunities that meet these needs and cements our position as a dedicated and nimble partner for brokers.”

The private debt market is currently undergoing a period of growth, with banks growing their commercial real estate loan books at 5.1% year-on-year – the slowest annual rate in four years.

With HMC Capital targeting  a $5 billion private credit platform and recently acquiring commercial real estate private debt fund manager Payton Capital in a $127.5 million deal.

While $12.2 billion specialist alternative investment manager Regal Partners acquiring Adrian Redlich’s commercial real estate lending business Merricks Capital for $235 million.

Global fund manager PGIM Real Estate recently launched its first real estate debt strategy in Australia, which has raised $300 million for its first fund and is on track to hit a target of $750 million.

Centuria Bass Credit has secured a new circa-$150 million warehouse facility, with an initial $100 million backing from global investment bank UBS.

“AFG has strict and discerning criteria for the partners they bring onto their panel, focused on industry leading best-practice lenders. I’m proud that Msquared Capital has joined the panel and look forward to working with the team to support their network,” Paul Myliotis, Capital’s co-founder at Msquared, who was previously a broker within AFG.

Head of Sales & Distribution at AFG, Them Lam, noted the current increased demands from clients for non-traditional lending options.

“We are delighted to welcome Msquared Capital to the AFG panel. Msquared’s commitment to provide tailored alternative lending solutions to AFG brokers and their customers further strengthens our commitment to broaden customer choice,” said Lam.

“Msquared’s products will provide an important and complementary addition to AFG’s extensive broker offering. We look forward to working with the Msquared team.”