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We have been made aware of a scam that involves individuals fraudulently representing themselves as employees of Barrenjoey to pitch fake investment services to members of the public. Barrenjoey does not offer any investment services to the public and anyone who is approached by any individual purporting to be from Barrenjoey should report the matter to ASIC or their local police as soon as possible. For further information regarding protecting yourself against scams, please visit the ACCC’s Scamwatch website.

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 provides 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.
If you are a professional or wholesale investor register your interest and request the Information Memorandum here
Fund overview

Evergreen fund open for applications quarterly

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)

Issuance Frequency

Units issued quarterly (subject to the trustee of the Fund's absolute discretion).

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