Butn launches Retail Private Credit Fund
Highlights:
Butn launches Retail Private Credit Fund
Butn has originated over $2 Billion of funding with consistent double-digit annual returns since inception
Butn will target fixed returns of c.9.5% p.a. for Retail Private Credit Fund Investors
Unique digital “Originate to Distribute” model to allow for full vertical integration from investment to funding
Butn will pay a bonus interest rate to Retail Private Credit Fund investors who are also new or existing Butn Shareholders
Butn Limited (ASX:BTN; Butn) is pleased to announce that it has launched a Retail Private Credit Fund (Fund). The Fund will finance Asset Backed Lending (ABL) opportunities, including those originated by Butn, and it will consist of multiple classes. The Fund will be spread across various asset classes including but not limited to Invoice Finance, Trade Finance, Asset Finance and Property Finance. A wholly owned subsidiary of Butn will operate the Fund and it will receive all management fees from the Fund (less expenses).
The Fund will accept investments, locked in for an initial minimum term of one year and will target a fixed return of c.9.5% p.a. to investors in the Fund. New or existing Shareholders in Butn, will be eligible to receive bonus interest paid with each distribution, so long as they are current Shareholders.
With Butn’s unique and innovative digital “Originate to Distribute” model, funds raised via traditional and digital means will be automatically applied to lending opportunities through Butn’s current and future distribution channels including its strategic partnership with MYOB. This digital ‘end to end’ model will allow Butn to control its cost of funds and lending capacity whilst also growing another revenue stream for Butn in the retail funds management space (with management fees and upside carry), leveraging off strategic shareholders and investors.
Butn’s Co-founder and Co-CEO, Rael Ross said: "This is a significant milestone for Butn, having launched the Retail Private Credit Fund and hitting over $2 Billion in originations since inception. With a solid track record of consistent double-digit returns, we believe it is the perfect time to allow Retail Investors to also share in the success of the Butn model in secured Asset Backed Lending opportunities. This launch and subsequent support show the true nature, robustness and popularity of the Butn suite of product offerings. We believe this will be the beginning of a new product class as we revolutionise the credit fund space with our original 'Originate to Distribute' full vertical integration model."
How can I find out more information about the Retail Private Credit Fund? Information on the Retail Private Credit Fund is available on Butn's website - www.butn.co
About Butn
Butn Limited is an Australian Business-to-Business (‘B2B’) funder innovating the way SMEs fund and grow their businesses. Butn focuses on transactional funding – funding SME businesses through their working capital constraints by financing individual transactions, leveraging the end debtor’s credit. With a vision of “Your money, today” Butn delivers cashflow funding solutions at the click of a Butn having funded over $2 billion to Australian businesses. For more information visit www.butn.co
