Barrenjoey First Ag Credit Fund

Expressions of Interest (For Professional and Wholesale Investors)

Barrenjoey Private Capital Management Pty Limited (ACN 636 972 480) (Barrenjoey) (Corporate Authorised Representative of Barrenjoey Private Capital Nominees Pty Limited (ACN 658 384 171), holder of AFS License No.556003) is pleased to offer investors the opportunity to participate in the Barrenjoey First Ag Credit Fund (the Fund).

Partnering with sector expert First Ag Capital Pty Ltd (ACN 652 074 381) (First Ag), the Fund will provide investors with exposure to a diversified pipeline of loans to borrowers in the food and fibre sector.

By targeting a sector deprived of capital the Fund seeks to deliver strong risk weighted returns to investors while supporting primary industries and re-instating the provision of capital to a highly attractive cross section of mid-sized agricultural enterprises.

Any investment carries risk. An investment in the Fund should only be made after careful review of the information memorandum prepared to provide information for investors considering an investment in the Fund (Information Memorandum) and the summary of risks included in Section 11 of the Information Memorandum.

Fund overview

Targeted initial raise of ~$80m

6-7% above BBSW target return

Structures have a tested and proven track record

Uncorrelated to equity and property markets

Targeted yields of 11.0% p.a. paid in quarterly distributions representing 6-7% above BBSW (Based on BBSW of 4.31%)

Access to a diversified pipeline of loans on target of 70% loan-to-value ratio across commodity assets in the food and fibre sector. The Fund represents a differentiated offering with returns uncorrelated to the equity market and property prices

Exposure to an underserviced borrower segment in Australia and New Zealand: strong relationships with borrowers and innovative structures earn a premium to institutional lenders

Proven, sophisticated structures are in place to mitigate common agriculture risks, transfer of risk to quality institutional counterparties. The product has a proven track record through periods of historic volatility

Institutional grade funds management and governance with Barrenjoey

Key attributes

Sophisticated commodity-backed lending

Drawing on capital structures originally developed by merchant banks in the early 18th century.

Fit-for-purpose structures

Designed to transfer borrower credit risk into performance risk, anchored by commoditised, liquid assets and high-quality institutional counterparties.

Strategic lending opportunities

Focused on corporatised counterparties, primarily medium- to large-scale agribusiness enterprises. Targeting significant loan market opportunities under-serviced by traditional banks

Uncorrelated credit product

Offering excellent portfolio diversification, with no direct correlation to equity or property markets

Proven expertise

Employing well-tested structures and experienced managers with an enviable track record, supported by the corporate governance and funds management expertise of Barrenjoey and its related bodies corporate

Self-liquidating security

Secured against individual assets, complemented by Fund oversight over all levels of borrower contracts and trades

First Ag’s sophisticated structures mitigate common agriculture risks and protect investors through the transfer of risk to quality institutional counterparties.

Access to a pipeline of geographic and commodity diversified loans across assets in the food and fibre sector. This process produces a unique and differentiated offering with uncorrelated returns.

The Fund extends credit against large scale commoditised, liquid assets and the quality institutional counterparties that stand behind them. The liquidity profile of each of the assets is set out below.

Assets typically fully re-cycled every 60 to 120 days
Existing assets are sold and new assets replace them on a weekly basis
Contracted to institutional purchasers on fixed price contracts
Geographic diversification
Assets tracked and monitored throughout AU / NZ

The Fund (through a commodity trading special purpose vehicle) will have legal ownership and the right to sell grain if prices fall
Institutional bulk handlers offer a two to five day “cash settlement” option
Bulk handlers assess, verify and insure the quality and presence of grain.

Dairy production is contracted to large scale purchasers
Milk is purchased daily or every second day, with real time data made available by the dairy processors on production volumes and quality
Debt servicing attachment point is low relative to total value of milk contract

Key Terms of the Fund(1)

Formal Launch	February 2025
Initial Close Date	25 March 2025 (subject to change)
Initial close size	Initial close of ~$80m (subject to the trustee of the Fund’s absolute discretion to accept more or less).
Target Returns	6-7% over BBSW per year, in quarterly cash payments.
Investors	Wholesale only
Minimum Commitment	A$100,000 or such lower amount as determined by the trustee of the Fund in its absolute discretion.
Fees	Refer to Section 2 of the Information Memorandum
Fund Term	Open-ended, however the trustee of the Fund may determine to stop taking applications in respect of an investment in the Fund at its discretion.
Liquidity Options	Refer to Section 2 of the Information Memorandum

1. Indicative and subject to change