Real estate private equity firm Wentworth Capital has launched a private credit platform.
Wentworth Private Credit (WPC) will provide structured debt for property assets transactions.
The new division will be led by Issa Chehab who previously led Blackstone’s Australian real estate credit business for ten years.
No financial details of the new venture have been disclosed but Wentworth said the establishment of WPC had been supported by a “significant and scalable seed commitment” from Hong Kong-based Sun Hung Kai & Co via its funds management subsidiary SHK Capital Partners.
Group executive chairman of SHK and Co, Seng Huang Lee, said: “We see this not just as an investment but as a long-term partnership that generates opportunities across our alternative investment platforms.”
According to Wentworth, the launch of WPC will represent a significant expansion and diversification of its business with its existing equity investment strategy to now be mirrored in its approach to credit. WPC will focus on underserved sectors of the real estate credit market, such as assets to be repositioned and value-add projects. Wentworth believes the firm’s real estate expertise will enable it to create appropriate credit structures for these projects. The firm notes that private credit is much more active in these types of loans globally than in Australia.
WPC has already funded a few transactions across the residential, industrial and commercial sectors and Wentworth says it has a strong pipeline across various sectors and geographies.
Chehab said: “There is a real and genuine demand in the Australian market for a trusted, local provider, that has the right governance structures in place and is able to move quickly. The opportunity set we have identified is in the mid-market where the gap is too small for mega funds but the assets and capital structures are more complex and require sophisticated expertise and solutions.
“The strength in Wentworth’s existing reputation, real estate investment expertise, local market integration and talent, and high standards of governance, all position the firm with a genuine point of difference.”
Chehab will lead a specialist credit investment team including recent recruit managing director Ben Jackson who was previously co-head of capital advisory at Savills. Jackson will originate and manage transactions.
Earlier this year, Wentworth appointed Josh Peel as head of capital to lead capital raising across all its strategies. Peel has over 25 years’ experience including with Partners Group and most recently JP Morgan.
Wentworth chief executive and co-founder Alastair Nash said the launch of WPC was part of the firm’s continuing overall growth.
Founded in 2019, Wentworth has completed over $2.6 billion in real estate transactions.
Image: Wentworth Capital is an investment partner in this office building in Harris Street, Pyrmont, Sydney.