Investing alongside our investors

The clearest test of alignment is also the simplest: does the manager have their own money invested, at the same risk, as the investors they serve?

At Merx, the answer is yes – and it is structural, not a marketing line. Our own capital is invested in the Merx Private Credit Fund on the same terms, and at the same risk, as every other investor.

That means we stand behind the same loans, are exposed to the same risks and share the same outcomes.

We aren’t managing someone else’s money from the sidelines. We’re investing alongside the people who have entrusted us with theirs.

Because our interests are aligned, every lending decision, every loan and security we document, matters to us in exactly the same way it matters to our investors.

What this means for investors

Skin in the game is a safeguard no policy document can replicate. When the people assessing every loan have their own capital at risk in exactly the same way, the manager’s interests and the investors’ interests point in the same direction – by design, not by promise.

Investors are not relying on us to choose between their interests and ours. The structure of the Merx Private Credit Fund means they are aligned.

Shared interests encourage disciplined decisions

When our own capital sits alongside investor capital, there is little incentive to pursue unnecessary risk or focus on short-term outcomes.

Instead, the emphasis remains on careful lending decisions, thoughtful risk assessment and preserving capital over the long term.

That doesn’t remove investment risk. Every investment carries risk.

But it does create an environment where prudent decision-making benefits everyone, and where poor decisions cost everyone equally – including us.

Shared outcomes

Alignment doesn’t guarantee investment outcomes. Nothing does.

But it does mean the people making lending decisions share in those outcomes alongside their investors – in full, and on the same terms.

If you would like to understand how alignment works within the Merx Private Credit Fund, we’d love to hear from you.

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.