The USPC Fund is underpinned by the same core principles that have driven the success of the La Trobe Australian Credit Fund offerings: investment in high-quality assets, construction of diversified portfolios, and a disciplined approach that embeds a margin of safety.
Since its inception in December 2023, the Fund has demonstrated strong growth and scalability, with steady monthly applications and capital deployments into a pure-play portfolio. The strategy has remained true to mandate, with no deviation from its original investment thesis. As the USPC Fund has expanded, so too has its diversification across industries and borrower profiles.
Underlying Fund Allocations, 30 November 2025*
Asset Quality
The USPC Fund maintains its laser-like focus on direct lending – the most conservative segment of the corporate private credit market – positioning itself at the top of the capital structure. Loans are extended to mature, well-managed businesses, backed by private equity sponsors. This approach provides investors with defensive exposure to the US mid-market asset class and a portfolio designed to perform across market and economic cycles.
Approximately 95% of borrowers operate in non-cyclical sectors, with a significant concentration in service-based industries that deliver essential, non-discretionary services (e.g. enterprise software and HVAC services). These businesses are characterised by resilient, capital-light models and stable free cash flow generation. This provides a foundation of quality businesses, who operate without the volatility of cyclical markets – a wonderful foundation for a low volatility income portfolio.
The strategy deliberately excludes exposure to cyclical sectors such as restaurants and retail, as well as industries with elevated regulatory or commodity risk, including energy and healthcare. Instead, the USPC Fund favours businesses with strong recurring revenue and recession-resistant models.
Asset Performance
Despite ongoing volatility in US financial markets, the portfolio has exhibited resilience and quality as designed with 98.1% of loans performing in line with expectations. The growth and the resilience of US middle market companies continues as a fully supported thematic. At 30 September 2025, there was one loan in the portfolio (representing 1.9% of AUM) which is underperforming (Risk Rated 3) and no loans on non-accrual (Risk Rated 4). Detailed portfolio metrics for the USPC can be found here.
Portfolio Composition
As at 30 November 2025, the portfolio comprised 117 individual loan assets across 31 distinct industries, with an average investment size of USD $3.8 million. Controlled single exposures ensure that no individual borrower or sector can disproportionately influence overall performance. This level of diversification is expected to further deepen as the USPC Fund continues to scale.
An Unparalleled Approach to Granularity & Diversification
A key feature of the USPC Fund’s construction is its conservative approach to risk management. The strategy focuses exclusively on senior secured term loans, with a substantial equity cushion beneath each investment. The average loan-to-valuation ratio stands at 40%, meaning that 60% of the capital stack is equity held by private equity sponsors who are actively engaged in the management of these portfolio companies to protect their investments.
La Trobe Financial benefits from being part of a dedicated pool of capital within the broader US$21bn Morgan Stanley private credit platform, which operates under similar mandates across ten separate capital pools. When MS Capital Partners originates a loan approved by its Investment Committee, the USPC Fund participates alongside these pools.
For example, in a transaction involving a company valued at USD $1 billion, the private equity sponsor may contribute USD $600 million in equity, with the remaining USD $400 million financed through a direct, first lien loan. Morgan Stanley may lead the transaction, and our USPC Fund may participate with a USD $5 million allocation, alongside Morgan Stanley’s other funds. This structure enhances the depth of diversification available to USPC Fund.**
The La Trobe US Private Credit Fund has been purpose-built for retirement-focused investors seeking resilience, and regular returns. Backed by a deeply experienced partner with a proven track record across market cycles, the Fund combines disciplined risk management with unparalleled diversification to deliver confidence in every market environment. This is La Trobe Financial’s commitment: a strategy designed to protect and grow wealth, supported by expertise you can trust.
*As of 30 November 2025, based on fair market value. No guarantee can be given that the Underlying Fund will be able to identify similar or comparable investment opportunities, or have the same overall composition as shown above, in future periods. Figures shown are unaudited and are rounded and therefore totals may not sum.
Any Financial product advice is general only and has been prepared without considering your objectives, financial situation or needs. You should, before investing or continuing to invest in the La Trobe US Private Credit Fund, consider the appropriateness of the advice having regard to your objectives, financial situation or needs and consider the Product Disclosure Statement for the fund.
**For illustrative purposes only.
La Trobe Financial Asset Management Limited ACN 007 332 363 Australian Financial Services Licence No. 222213 is the responsible entity of the La Trobe US Private Credit Fund ARSN 677 174 382. It is important that you consider the Product Disclosure Statement (PDS) when deciding whether to invest or continue to invest in the fund. The PDS and Target Market Determination are available on our website.
