Betashares has launched its Betashares Private Capital Cliffwater Private Credit Fund, the first offering from its newly established Private Capital division.
The new unlisted fund will provide wholesale investors and financial advisers with cost-effective exposure to a highly diversified portfolio of senior secured loans to predominantly US middle-market companies, investing in a fund managed by globally recognised private markets asset manager, Cliffwater LLC.
The underlying strategy has delivered attractive risk-adjusted returns with a high level of capital stability across a variety of market conditions. For eligible Australian investors and their financial advisers, the new fund offers opportunity for attractive quarterly income, with a projected 12-month distribution yield of 8-9% p.a. (estimate only, based on certain assumptions set out in the end note, actual yield may vary) and is currency hedged back to Australian dollars.
The company said the launch of the Betashares Private Capital Cliffwater Private Credit Fund marks a meaningful milestone in Betashares’ mission to help Australians achieve their financial goals by offering access to intelligent, institutional-grade investment opportunities as part of its new Private Capital division. With a cost-effective management fee, daily applications and a quarterly redemption facility, the Fund is built to deliver competitive, transparent access to an asset class that has traditionally been the domain of institutional investors. The Fund will be available to financial advisers and their clients via major platforms, as well as to eligible wholesale investors via Betashares Direct.
Betashares founder and chief executive officer, Alex Vynokur, said the newly launched fund is the first offering from Betashares Private Capital and offers opportunity for compelling returns from the deepest private credit market in the world, for eligible investors comfortable with the risks associated with an asset class that is inherently illiquid.
“For nearly 15 years, we have been focused on delivering high-quality investment opportunities that offer compelling risk adjusted return profiles as part of a diversified portfolio,” Vynokur said. “In service of this mission, our new US private credit exposure, delivered in partnership with Cliffwater, demonstrates our intent to selectively partner with best-in-class private asset managers to deliver institutional-grade investment solutions to eligible Australian investors and their financial advisers.
Also read: Betashares To Launch Into Private Credit
“Cliffwater’s unique multi-lender investment strategy has a very compelling track record. We’re proud to be partnering with a high-quality asset manager to unlock a diversified pathway into US private credit for Australian investors.”
The underlying fund invests in loans sourced through the Cliffwater Corporate Lending Fund Platform, which currently holds exposure to over 3,800 individual loans across sectors such as healthcare, industrials, IT, and financials. The portfolio consists predominantly of senior secured, floating-rate loans to healthy US businesses. These characteristics have contributed to a strong historical track record, with the underlying fund delivering a 9.63% net annualised return (as at 30 June 2025) in USD since its inception in June 2019.*
Cliffwater’s approach is underpinned by a multi-lender model, partnering with globally respected loan originators. This structure allows for greater diversification and risk mitigation compared to many single-manager or single-sector strategies.
“By enabling responsible access to a high-quality private credit exposure, investors and their financial advisers have the opportunity to earn compelling risk adjusted returns. Over time, we’re looking forward to building on our private assets offering to offer more institutional grade investment solutions in areas where Australian investors have been traditionally underserved,” Vynokur said.
*Underlying fund historical performance is not indicative of future performance of either the underlying fund or the Betashares fund. Does not take into account impact of currency hedging and management fees in the Betashares fund. Betashares fund inception date is 27 August 2025.
End note: The projected 12-month distribution yield (current as at 27 August 2025) is an estimate only, subject to assumptions, risks and uncertainties. Actual results may differ materially. The projection is based on the underlying fund’s 12-month historical interest rate margin above the benchmark Secured Overnight Financing Rate (SOFR) added to projected SOFR rates, net of Fund fees and costs and estimated FX hedging impact, and assumes no loan portfolio changes, no defaults, and a consistent distribution policy. More info available at www.betashares.com.au/advisers/private.
