Why We’ve Increased the Class A Rate of the AltX Credit Fund—and What It Signals for Investors
April 16, 2025
April 16, 2025
April 16, 2025
Why We’ve Increased the Class A Rate of the AltX Credit Fund—and What It Signals for Investors
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With market conditions evolving, the rate increase reflects the resilience of our investment model, strong asset backing, and commitment to delivering competitive, risk-adjusted returns.
At AltX, we pride ourselves on combining disciplined credit expertise with a forward-thinking investment approach.
As we continue to navigate a shifting environment, we remain committed to offering our investors risk-adjusted returns that reflect both market dynamics and the strength of our underlying asset base.
That’s why since April 1st 2025, we increased the target interest rate for Class A of the AltX Credit Fund from 5.60% p.a. (RBA Cash Rate + 1.50%) to 6.05% p.a. (RBA Cash Rate + 1.95%).
This decision is not just a response to prevailing market conditions, it’s a reflection of our solid track record, the sophistication of our risk management framework, and the growing demand for real estate debt investments.
Speaking about the increase, Co-Founder and Co-CEO Nick Raphaely commented, "In an environment where typically, interest rates are softening, we’ve been able to increase the rate of return on Class A of the AltX Credit Fund.
That speaks directly to the resilience of our investment model. Our risk-managed approach and access to quality credit opportunities continue to deliver returns and strong rates that are uncorrelated to public markets."
Understanding the Context
The past 12 months have brought renewed attention to private credit markets. With volatility in equities and uncertainty across traditional fixed income, investors are increasingly turning to asset-backed credit to preserve capital while enhancing yield.
At the same time, rising interest rates and tighter bank lending standards have created a window of opportunity for non-bank lenders. The demand for well-structured, secured lending has surged—particularly in Australia’s real estate debt sector, where AltX has deep roots and proven performance.
Why We’ve Increased the Class A Rate
The uplift in the Class A rate is part of our ongoing strategy to align investor returns with both market trends and the continued outperformance of the Fund.
Key drivers of this decision include:
Market recalibration: As base rates rise, it's essential that credit yields remain competitive relative to inflation and other asset classes. Adjusting the Class A rate ensures investors are rewarded appropriately for their capital deployment.
Strength of the loan book: Our portfolio is underpinned by first mortgage-secured loans, selected through a rigorous underwriting process and supported by real property collateral. Our consistent performance across cycles gives us confidence in delivering dependable income streams.
Investor demand: We’re seeing a clear shift in appetite toward lower-volatility, liquidity-focused investments. The increase in the Class A rate reflects our commitment to meeting this demand while maintaining the conservative profile that defines the AltX Credit Fund.
Looking Ahead
With direct access to high-quality deals, our investors benefit from transparency, active management, and diversification, without sacrificing liquidity.
Raising the Class A rate is part of a broader strategy to provide enduring value to our investor base. It’s not just a number, it’s a reflection of the confidence we have in our model, and the long-term relationships we build with both borrowers and investors.
As private credit cements its place as a core component of the modern investment portfolio, AltX will remain at the forefront; delivering tailored access to Australia’s real estate debt investment market with discipline, integrity, and performance.
At AltX, we pride ourselves on combining disciplined credit expertise with a forward-thinking investment approach.
As we continue to navigate a shifting environment, we remain committed to offering our investors risk-adjusted returns that reflect both market dynamics and the strength of our underlying asset base.
That’s why since April 1st 2025, we increased the target interest rate for Class A of the AltX Credit Fund from 5.60% p.a. (RBA Cash Rate + 1.50%) to 6.05% p.a. (RBA Cash Rate + 1.95%).
This decision is not just a response to prevailing market conditions, it’s a reflection of our solid track record, the sophistication of our risk management framework, and the growing demand for real estate debt investments.
Speaking about the increase, Co-Founder and Co-CEO Nick Raphaely commented, "In an environment where typically, interest rates are softening, we’ve been able to increase the rate of return on Class A of the AltX Credit Fund.
That speaks directly to the resilience of our investment model. Our risk-managed approach and access to quality credit opportunities continue to deliver returns and strong rates that are uncorrelated to public markets."
Understanding the Context
The past 12 months have brought renewed attention to private credit markets. With volatility in equities and uncertainty across traditional fixed income, investors are increasingly turning to asset-backed credit to preserve capital while enhancing yield.
At the same time, rising interest rates and tighter bank lending standards have created a window of opportunity for non-bank lenders. The demand for well-structured, secured lending has surged—particularly in Australia’s real estate debt sector, where AltX has deep roots and proven performance.
Why We’ve Increased the Class A Rate
The uplift in the Class A rate is part of our ongoing strategy to align investor returns with both market trends and the continued outperformance of the Fund.
Key drivers of this decision include:
Market recalibration: As base rates rise, it's essential that credit yields remain competitive relative to inflation and other asset classes. Adjusting the Class A rate ensures investors are rewarded appropriately for their capital deployment.
Strength of the loan book: Our portfolio is underpinned by first mortgage-secured loans, selected through a rigorous underwriting process and supported by real property collateral. Our consistent performance across cycles gives us confidence in delivering dependable income streams.
Investor demand: We’re seeing a clear shift in appetite toward lower-volatility, liquidity-focused investments. The increase in the Class A rate reflects our commitment to meeting this demand while maintaining the conservative profile that defines the AltX Credit Fund.
Looking Ahead
With direct access to high-quality deals, our investors benefit from transparency, active management, and diversification, without sacrificing liquidity.
Raising the Class A rate is part of a broader strategy to provide enduring value to our investor base. It’s not just a number, it’s a reflection of the confidence we have in our model, and the long-term relationships we build with both borrowers and investors.
As private credit cements its place as a core component of the modern investment portfolio, AltX will remain at the forefront; delivering tailored access to Australia’s real estate debt investment market with discipline, integrity, and performance.
At AltX, we pride ourselves on combining disciplined credit expertise with a forward-thinking investment approach.
As we continue to navigate a shifting environment, we remain committed to offering our investors risk-adjusted returns that reflect both market dynamics and the strength of our underlying asset base.
That’s why since April 1st 2025, we increased the target interest rate for Class A of the AltX Credit Fund from 5.60% p.a. (RBA Cash Rate + 1.50%) to 6.05% p.a. (RBA Cash Rate + 1.95%).
This decision is not just a response to prevailing market conditions, it’s a reflection of our solid track record, the sophistication of our risk management framework, and the growing demand for real estate debt investments.
Speaking about the increase, Co-Founder and Co-CEO Nick Raphaely commented, "In an environment where typically, interest rates are softening, we’ve been able to increase the rate of return on Class A of the AltX Credit Fund.
That speaks directly to the resilience of our investment model. Our risk-managed approach and access to quality credit opportunities continue to deliver returns and strong rates that are uncorrelated to public markets."
Understanding the Context
The past 12 months have brought renewed attention to private credit markets. With volatility in equities and uncertainty across traditional fixed income, investors are increasingly turning to asset-backed credit to preserve capital while enhancing yield.
At the same time, rising interest rates and tighter bank lending standards have created a window of opportunity for non-bank lenders. The demand for well-structured, secured lending has surged—particularly in Australia’s real estate debt sector, where AltX has deep roots and proven performance.
Why We’ve Increased the Class A Rate
The uplift in the Class A rate is part of our ongoing strategy to align investor returns with both market trends and the continued outperformance of the Fund.
Key drivers of this decision include:
Market recalibration: As base rates rise, it's essential that credit yields remain competitive relative to inflation and other asset classes. Adjusting the Class A rate ensures investors are rewarded appropriately for their capital deployment.
Strength of the loan book: Our portfolio is underpinned by first mortgage-secured loans, selected through a rigorous underwriting process and supported by real property collateral. Our consistent performance across cycles gives us confidence in delivering dependable income streams.
Investor demand: We’re seeing a clear shift in appetite toward lower-volatility, liquidity-focused investments. The increase in the Class A rate reflects our commitment to meeting this demand while maintaining the conservative profile that defines the AltX Credit Fund.
Looking Ahead
With direct access to high-quality deals, our investors benefit from transparency, active management, and diversification, without sacrificing liquidity.
Raising the Class A rate is part of a broader strategy to provide enduring value to our investor base. It’s not just a number, it’s a reflection of the confidence we have in our model, and the long-term relationships we build with both borrowers and investors.
As private credit cements its place as a core component of the modern investment portfolio, AltX will remain at the forefront; delivering tailored access to Australia’s real estate debt investment market with discipline, integrity, and performance.
At AltX, we pride ourselves on combining disciplined credit expertise with a forward-thinking investment approach.
As we continue to navigate a shifting environment, we remain committed to offering our investors risk-adjusted returns that reflect both market dynamics and the strength of our underlying asset base.
That’s why since April 1st 2025, we increased the target interest rate for Class A of the AltX Credit Fund from 5.60% p.a. (RBA Cash Rate + 1.50%) to 6.05% p.a. (RBA Cash Rate + 1.95%).
This decision is not just a response to prevailing market conditions, it’s a reflection of our solid track record, the sophistication of our risk management framework, and the growing demand for real estate debt investments.
Speaking about the increase, Co-Founder and Co-CEO Nick Raphaely commented, "In an environment where typically, interest rates are softening, we’ve been able to increase the rate of return on Class A of the AltX Credit Fund.
That speaks directly to the resilience of our investment model. Our risk-managed approach and access to quality credit opportunities continue to deliver returns and strong rates that are uncorrelated to public markets."
Understanding the Context
The past 12 months have brought renewed attention to private credit markets. With volatility in equities and uncertainty across traditional fixed income, investors are increasingly turning to asset-backed credit to preserve capital while enhancing yield.
At the same time, rising interest rates and tighter bank lending standards have created a window of opportunity for non-bank lenders. The demand for well-structured, secured lending has surged—particularly in Australia’s real estate debt sector, where AltX has deep roots and proven performance.
Why We’ve Increased the Class A Rate
The uplift in the Class A rate is part of our ongoing strategy to align investor returns with both market trends and the continued outperformance of the Fund.
Key drivers of this decision include:
Market recalibration: As base rates rise, it's essential that credit yields remain competitive relative to inflation and other asset classes. Adjusting the Class A rate ensures investors are rewarded appropriately for their capital deployment.
Strength of the loan book: Our portfolio is underpinned by first mortgage-secured loans, selected through a rigorous underwriting process and supported by real property collateral. Our consistent performance across cycles gives us confidence in delivering dependable income streams.
Investor demand: We’re seeing a clear shift in appetite toward lower-volatility, liquidity-focused investments. The increase in the Class A rate reflects our commitment to meeting this demand while maintaining the conservative profile that defines the AltX Credit Fund.
Looking Ahead
With direct access to high-quality deals, our investors benefit from transparency, active management, and diversification, without sacrificing liquidity.
Raising the Class A rate is part of a broader strategy to provide enduring value to our investor base. It’s not just a number, it’s a reflection of the confidence we have in our model, and the long-term relationships we build with both borrowers and investors.
As private credit cements its place as a core component of the modern investment portfolio, AltX will remain at the forefront; delivering tailored access to Australia’s real estate debt investment market with discipline, integrity, and performance.
