Merx private credit investment strategy
When assessing any investment, the underlying strategy plays a central role in shaping outcomes over time. How capital is allocated, how risk is managed, and how returns are generated are all critical considerations for investors seeking consistent performance.
Our portfolio strategy is designed to maintain a disciplined mix of lower- and higher-yielding investments, balancing capital preservation with return potential. As the graph below illustrates, a substantial portion of the portfolio is allocated to lower-risk lending secured by first mortgages, providing a stable foundation for the Fund. This is complemented by shorter-term, higher-yielding investments, including second mortgage and business asset-secured lending, which turn over more frequently and help enhance overall returns.
Loan Portfolio by Loan Concentration (31 March 2026)
Loan Portfolio by Security Type (31 March 2026)
Shared Risk. Shared Reward.
Alignment of interests is a core principle of the Merx Private Credit Fund. The Trust’s management team invests personally alongside our investor partners and is exposed to the same risks and potential returns. Put simply, we approach every investment decision with the same care and discipline we would apply to our own capital.
Asset Selection
The Merx Private Credit Fund invests in secured loans to business owners and property professionals. The Directors of the Manager have developed and refined their approach to private credit investment selection and management over the last 20+ years. This is reflected in the process established at Merx now. This includes rigorous evaluation of borrower eligibility and suitability, together with careful consideration of the finance requirements underpinning each business or property investment plan.
The strength of our lending approach is reflected in the many Merx client success stories — a growing body of examples that demonstrate how considered, purpose-fit finance can help support borrowers with sound plans. Read about recent client scenarios here.
Diversification
As noted above, the Merx Private Credit Fund invests in secured loans to business owners and property professionals. An investment in the Fund is concentrated in Private Credit – Direct Lending asset class. However, rather than being exposed to any individual loan concentration, investors hold an interest in a portfolio of loans. The Fund maintains diversification across a range of unrelated borrowers, spanning different business and property sectors and a variety of risk profiles. This helps reduce concentration risk and limits the effect any single underperforming loan may have on the overall portfolio.
Monitoring
Merx takes a comprehensive approach to monitoring the performance of loans made to business owners and property professionals, with monthly reviews conducted across the portfolio. These assessments extend beyond financial performance alone and consider the strength of borrower relationships and the maintenance of clear communication channels.
This ongoing monitoring supports the early identification of potential issues or departures from expected outcomes, enabling proactive steps to be taken to protect investor interests and support the continued health of the portfolio.
Investors must qualify as “wholesale investors” as defined in Schedule 1 of the Financial Markets Conduct Act 2013. The fund is not suitable for retail investors.
11.63
%
Rolling 12 month pre-tax return
As at 30 June, 2026
Comments from Merx Investors
I have enjoyed investing with Merx and learnt a lot through the process too. Merx have been very transparent with what they do and the communication has been consistent. Wouldn’t be a testimonial without mentioning the returns too, thanks for those. Looking forward to being a part of the journey for years to come.
Luke
There's a lot to be said for a fund where the managers invest alongside their investors. It's a real partnership where the interests of investors are prioritised. The returns to date have been great, the unit structure gives me the flexibility I want, and I've been really impressed with the communication.
Aaron
I've been impressed by how Merx looks after their investors - from how the fund is structured for redemption, reinvestment, and tax efficiency - to the communication and care in understanding my investment goals. It makes a difference - investing alongside managers who are also invested in the fund.
John
Aligned Interests
Aligned interests is a core principle of the Merx Private Credit Fund. As the Fund's management team, we personally invest alongside our investor partners. We have the same risks and potential returns as our investors.
Aligned Interests
Aligned interests is a core principle of the Merx Wholesale 1 PIE Fund. As the Trust’s management team, we personally invest alongside our investor partners. We have the same risks and potential returns as our investors.
- Information Memorandum
Get the detail – fund description, management, fees, risks and more. View the Merx Private Credit Fund Information Memorandum here.
- Investor Application
Complete the Merx Private Credit Fund Investor Application form here. Note: the fund is not suitable for retail investors.