West Street European Private Credit Fund (AUD)

A defensive European Private Credit strategy for Australian eligible investors

West Street European Private Credit Fund (AUD)

West Street European Private Credit Fund (AUD) is an open-ended fund focused on direct origination of senior secured corporate debt in high-quality, mostly private equity-backed companies, primarily in Europe.

Bringing together the established and specialist global private credit platform of Goldman Sachs Asset Management and its Australian investment partner, Channel Capital, the West Street European Private Credit Fund (AUD) (‘Fund’) provides Australian eligible investors access to a diversified portfolio of European private credit investments.

The Fund offers investors immediate exposure to a diversified portfolio of high-quality European private credit loans across non-cyclical industry sectors, presenting attractive risk-return potential, while leveraging Goldman Sachs Asset Management’s 28+ year track record and expertise in private credit investing.

Why European Private Credit is an Essential Portfolio Diversifier

James Reynolds, Global Head of Direct Lending explains why Europe is a compelling destination for private credit investors, how the team approaches origination and structuring, and how the scale and network of Goldman Sachs provides a unique opportunity set for investors.

Fund Highlights

Established European Private Credit Platform

Access to an industry-leading and established lender, with a proven track record in European direct lending throughout market cycles.

Differentiated Portfolio Sourcing

Strategic portfolio sourcing that leverages Goldman Sachs' vast network and exclusive deal flow, supported by strong sponsor relationships.

High Quality Portfolio

Sponsor-backed loans to mid-to-large cap borrowers with strong cashflows and market-leading positions.

Income & Capital Preservation Focus

Targeting floating rate credit through directly originated private loans, with the potential to provide a stable source of return and capital stability through high-quality assets.

Efficient Access

Direct access to proprietary deal flow through an open-end structure, with monthly applications and redemptions* and quarterly distributions**.

Defensive Strategy

A defensively positioned, highly selective portfolio that focuses on senior secured debt in non-cyclical, recession-resilient industries.

*Processed monthly, subject to liquidity. Redemption requests must be received 40 Calendar Days prior to the Redemption Date.**Quarterly when applicable or available from the Underlying Fund.

Prioritising High-Quality Companies for Portfolio Resilience

While there are pockets of opportunities in all segments of European private credit, Goldman Sachs Asset Management identifies the middle-and large-cap market in European private credit as offering superior relative value on a risk-adjusted basis.

Companies in this segment typically have established operations, stable cash flows, and robust market positions, reducing default risk compared to smaller counterparts. With better credit profiles and established industry leadership, mid- and large-cap firms instill confidence in lenders regarding business stability and longevity compared to riskier alternatives. Additionally, their potential for larger financing needs presents opportunities for higher interest income.

Fund at a glance

Fund Name and APIR	West Street European Private Credit Fund (AUD) - Class A APIR: CHN2106AU
Responsible Entity	Channel Investment Management Limited ACN 163 234 240 AFSL 439007 (‘CIML’ or ‘Responsible Entity’)
Underlying Fund	European Credit, being a sub-fund of the Goldman Sachs Alternatives SICAV
Underlying Fund Manager	Goldman Sachs Asset Management International (the ‘Underlying Fund Investment Manager’ or together with its affiliates ‘GSAM’)
Investment Objective	Generate income and, to a lesser extent, long-term capital appreciation
Underlying Fund Target asset allocation	~80% in private credit assets and 20% in liquid assets¹
Geography Mix	80%+ of Private Credit Investments in Europe²
Underlying Investments	Authorised investments of the Underlying Fund include, but are not limited to: Directly originating senior secured debt with borrowers co-investing with other senior credit Short term liquid instruments such as money market Debt Instruments including syndicated bank loans, public fixed income securities and exchange traded funds cash and cash-like equivalents
Minimum investment amount	A$100,000 with lower minimums via platform access
Valuations	Monthly
Applications	Monthly
Redemptions	Monthly³
Management fees and costs⁴	1.40% p.a.
Indirect performance fee⁵	The Fund does not currently charge a performance fee. The Underlying Fund charges Carried Interest on both the income generated and the realised capital gains portions of the portfolio as set out below. 12.5% Carried Interest subject to a 5% p.a. hurdle rate and 100% catch-up (i.e. 1.25% per calendar quarter) Carried Interest from realised capital gains: 12.5% of cumulative realised capital gains from inception through the end of the relevant calendar year⁶
Currency	AUD
Minimum suggested timeframe	Five years plus

1. Liquid assets such as cash, cash equivalents, short term liquid instruments (such as money market instruments) and other tradeable securities or debt instruments (including syndicated bank loans, public fixed income securities and exchange-traded funds).

2. Up to 20% of the Underlying Fund’s NAV (excluding the Liquid Assets) may be invested in Investee Companies all or substantially all of the operations of which are, as reasonably determined by the Investment Manager, in non-European jurisdictions. With respect to Private Credit Investments, the Sub-Fund shall not make any investment in an Investee Company all or substantially all of the operations of which are, as reasonably determined by the Investment Manager, in one or more countries (except Singapore) not included in the Organization for Economic Cooperation and Development (“OECD”), as such group of countries may be reconstituted from time to time.

3. It is expected that, while the Fund is liquid, requests for redemption of Units will generally be processed monthly on the last Calendar Day of each month (‘Redemption Date’). Note that an Investor’s ability to redeem will be subject to various factors including available cash in the Fund and the Fund’s ability to redeem from the Underlying Fund. A request for redemption must be received at least 40 Calendar Days prior to the Redemption Date.

4. Includes the Underlying Fund’s management fee of 1.25% p.a. and is exclusive of the Underlying Fund’s estimated expenses of 0.40% p.a. Although entitled to do so, the Fund does not currently charge a performance fee.

5. Performance fees charged by interposed vehicles are deducted from the assets of the interposed vehicles as and when incurred and are therefore reflected in the Underlying Fund’s NAV and the value of the Fund’s investment in the Underlying Fund.

6. Computed net of all realised capital losses and unrealised capital depreciation on a cumulative basis, less the aggregate amount of any previously paid Carried Interest from capital gains as calculated in accordance with relevant accounting standards, paid at the end of the of each calendar year.

Research Ratings

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The rating issued 8 November 2024 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2023 Lonsec. All rights reserved.

The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned 8 November 2024 for the West Street European Private Credit Fund (AUD)) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at https://www.zenithpartners.com.au/our-solutions/investment-research/regulatory-guidelines/.

Portfolio Positioning and Suitability

The Fund can complement traditional equity and fixed income exposures and can form part of a private alternatives allocation. It may suit Australian eligible investors who:

Have a medium-to-long-term investment timeframe
Are looking for stable income and the potential for capital preservation
Are looking for opportunities that capitalise on major long-term structural trends
Seek an additional source of diversification via an uncorrelated return profile
Seek geographic diversification away from Australian credit exposures
Are comfortable with the less liquid nature of private credit.

What are the Risks?

Several specific risks are associated with investing in the Fund. This can include, but is not limited to:

Market risk
Interest rate risk
Underlying Fund risk
Liquidity risk
Withdrawal risk
Foreign currency risk
Foreign investment risk
Inflation risk
Regulatory risk

Please refer to section 8 of the Product Disclosure Statement for more information about the risks of investing in the Fund.

This information has been prepared for use only by wholesale clients (As defined under the Corporations Act 2001 (Cth)).

Channel Investment Management Limited ACN 163 234 240 AFSL 439007 (‘CIML’) is the responsible entity for the West Street European Private Credit Fund (AUD) (‘AU Fund’) ARSN 676 298 641. Neither CIML, its officers, or employees make any representations or warranties, express or implied as to the accuracy, reliability or completeness of the information contained on this website and nothing contained on this website is or shall be relied upon as a promise or representation, whether as to the past or the future. Past performance is not indicative of future performance. This information is given in summary form and does not purport to be complete. Information on this website should not be considered advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling units in the AU Fund and does not take into account an investor’s particular investment objectives, financial situation or needs. Before acting on any information investors should consider the appropriateness of the information having regard to these matters, any relevant PDS and in particular, they should seek independent financial advice. For further information and before investing, please read the PDS and TMD.

Any interests expressed is taken as an indicative intention only and is not binding on the investor or CIML.

Views and opinions expressed are for informational purposes only and do not constitute a recommendation by Channel Capital or Goldman Sachs Asset Management to buy, sell, or hold any security. Views and opinions are current as of publishing and may be subject to change, they should not be construed as investment advice. This material on the Underlying Fund is provided for educational purposes, in the context of the distribution of the AU Fund only and should not be construed as investment advice or an offer or solicitation to participate in the Underlying Fund.

Wholesale, Professional Investors and Advisers only

West Street European Private Credit Fund (AUD)