Australian venture capital firm OneVentures has hit the final close of its 1V Venture Credit Fund at A$80 million ($57 million), making it the largest Australia-domiciled venture debt fund.
The fund had held a first close at A$45 million in April 2019. It was launched in late 2018 with a target to raise A$100 million, according to a statement. The credit fund will make investments in technology and healthcare companies over the next three to four years.
It also plans to recycle in the first five years of the lifespan, so 1V Venture Credit Fund will be able to deploy up to A$120 million, given that the reinvesting capacity is 1.5x of the committed capital, an executive with OneVentures told DealStreetAsia.
“The final close was over-subscribed with the fund already in profit as on 30 June,” the statement said. Both new and existing local and international limited partners participated in backing 1V Venture Credit Fund, including many of Australia’s largest family offices and high net worth investors.
OneVentures said it will write checks between A$500,000 and A$10 million. It will have the capacity to invest up to A$20 million along with its co-investors and Israeli partner Viola Credit.
OneVentures and Viola Credit had sealed a partnership in August 2018 to launch 1V Venture Credit Fund. Viola Credit is part of Viola Group, Israel’s largest technology investment group managing $3 billion.
The duo is about to close their first joint investment, according to the statement.
OneVentures’ debt fund will seek businesses leveraging technological innovation and operating in the B2B SaaS, fintech, proptech, healthtech, marketplace, consumer and e-commerce spaces, which generate upwards of A$3-5 million in revenue.
The vehicle has already made six transactions across five companies, including e-commerce shipping and logistics firm Shippit, business intelligence software company Phocas and Airbnb property management service company Hometime.
A sixth investment is in progress.
“OneVentures is delighted with the progress of this new fund since launch with fund metrics on deployment and interest yield paid at or ahead of expectations,” said Michelle Deaker, managing partner of OneVentures.
Nick Gainsley, principal of the credit fund, added: “Venture credit is an excellent product in this current time, providing a flexible solution for a company’s financing. Uses of capital include scaling a business more rapidly through investment into sales and marketing or extending runway without setting a valuation which is particularly applicable to businesses that may have experienced a setback or delay in progress such as through the COVID-19 pandemic.”
OneVentures has so far operated four funds. The three other vehicles include a A$170-million healthcare fund, the A$75-million OneVentures Innovation and Growth Fund and the A$40-million OneVentures Innovation Fund.