Exploring the Zagga CRED Fund: A CREDible Solution for Income-Focused Investors

In a world where traditional low-risk income options like bonds and cash savings accounts are failing to meet investor expectations, a new player has emerged in the financial market – Commercial Real Estate Debt (CRED). This subset of the private debt market is gaining popularity among investors looking for downside protection and stable income in uncertain times.

Zagga, a well-established Australian boutique investment manager, has introduced the Zagga CRED Fund (ZCF) to cater to the growing demand for defensive income streams amidst inflationary pressures. This unitised private debt fund offers investors an alternative to traditional investments by focusing on capital preservation and providing equity-like returns with debt security.

The ZCF aims to provide a CREDible avenue for portfolio diversification and regular, risk-adjusted income by investing in a curated portfolio of credit-vetted, mortgage-secured loans. With a track record of funding over $1.5 billion across more than 250 loans without any losses, Zagga brings expertise and a focus on risk management to the table.

The shift in the commercial real estate lending market is evident, with private lenders predicted to provide over $50 billion in CRED lending by 2024. This change is driven by banks’ shrinking appetite due to regulated capital requirements, opening up opportunities for privately funded alternative lenders to meet the demand for real estate financing.

Investors can benefit from the Zagga CRED Fund by gaining exposure to the private debt asset class and earning regular, risk-adjusted income while focusing on capital preservation. This income-producing investment appeals to a growing class of sophisticated investors seeking transparency and returns from their investment products.

With a team boasting over 200 years of combined experience in credit, property, and investment management, Zagga remains committed to putting investors first and providing them with monthly income at attractive risk-adjusted returns. The Zagga CRED Fund offers a unique opportunity for investors to navigate the uncertainties of the global economy and achieve their financial goals.