What is my money actually doing while it’s earning that return?
Money is often reduced to numbers on a statement. A balance. A percentage return. A line in a portfolio.
To us, capital is more than that.
It is a resource. It allows businesses to grow, property professionals to act on opportunities, projects to move forward, and ideas to become reality.
When you invest in the Merx Private Credit Fund, your capital doesn’t simply sit in a portfolio.
It goes to work.
Capital with purpose
When you invest in the Merx Private Credit Fund, your money doesn’t simply sit in a portfolio.
It is put to work through direct lending to businesses and property professionals outside the traditional banking channel.
A business owner may need funding to act on an opportunity. A property professional may require capital to settle a purchase, build or reposition an asset. Before any funds are advanced, each lending opportunity is carefully assessed to determine whether it aligns with the Fund’s investment approach.
Once approved, capital is committed and borrowers pay interest and fees for access to that funding. Those payments are a source of Fund income and, after fees, expenses and other factors, contribute to investor returns.
The return isn’t abstract. It is generated through real activity in the real economy.
Why that matters
There are two reasons.
First, many investors take confidence from knowing where their money is working. Rather than being removed from the underlying activity, their capital is funding businesses and property professionals undertaking real commercial activity. There is satisfaction in knowing not only what your investment is earning, but what it is helping to make possible.
Returns in the Merx Private Credit Fund are generated because borrowers pay interest on capital that is helping them settle a purchase, fund a project, bridge a funding gap, acquire an asset or grow a business. The business owners and investors we support are in the market, taking commercial risks with the expectation of a positive outcome while continuing to support their families. The return is connected to real people in our community undertaking productive activity and driving the real economy.
Second, understanding where capital is deployed also helps investors understand the nature of the investment itself. Lending into the New Zealand business and property market-a market we know well, allows us to assess each borrower based on their circumstances, their track record, the purpose of the funding and the intended path to repayment.
We can see what the money is for.
We can understand how it is expected to come back.
The objective isn’t simply to put money to work.
It’s to put it to work thoughtfully.
More than a return
Every investment seeks to generate a financial return.
But many investors also want confidence that their capital is contributing to something tangible.
At Merx, investor capital supports businesses and property professionals undertaking real commercial activity. It is allocated with care, backed by security, and deployed into opportunities that have been carefully assessed.
Knowing where your money goes won’t replace the importance of investment performance.
But for many investors, it adds something equally valuable: the confidence that their capital is doing more than earning a return.
It’s helping create one.
Investors should carefully review the Information Memorandum and seek professional advice where appropriate before making any investment decision. Investments in private credit involve risk, including the potential loss of capital, and returns are not guaranteed. Understanding both the risks and the governance frameworks supporting the Fund can assist investors in making informed decisions about whether the investment is suitable for their objectives and circumstances.
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.