B. MOSES ASSET MANAGEMENT

Portica Private Debt Fund – PPD Fund 

A High Yield Private Credit Fund - Target Net Return 7.5%, 12% & 15% Income Distribution Paid Semi-Annually

About the Fund – PPD Fund

The Fund is an Australian domiciled unregistered unit trust, Portica Private Debt (PPD) Fund.

Investors subscribe for Loan Notes in a Series issued by the Fund when they invest. The proceeds of the Loan Notes are invested by the Fund through Series SPVs and the Manager (owned by the Credit & Portfolio Manager) in Underlying Loans in accordance with the Fund’s investment strategy and the criteria of the relevant Series. In general, each Loan Note in a Series represents an interest in the debt portfolio of the Fund held by the relevant Series SPV or Manager for that Series subject to liabilities relating to that Series; however, it does not give the investor an interest in the Fund or any particular asset of the Fund.

The Fund is committed to preserving capital and providing attractive, regular returns to debt investors. The Fund primarily invests in secured debt, generally backed by registered mortgages over real property in Australia and corporate guarantees. Additionally, the Fund considers investments in listed and unlisted debt instruments and securities and will seek to provide additional liquidity and returns through the Incidental Strategy.

The investment returns are generated from fixed and floating rate interest payments from its Underlying Loans made through the relevant Series SPVs and Manager for a Series, as well as deployment of funds under the Incidental Strategy before funds are invested in Underlying Loans.

To provide stable income stream and capital protection for Investors through predominantly commercial loans backed by tangible real estate or corporate guarantees and listed and unlisted debt instruments and securities.

The Fund’s portfolio comprises a variety of private debt investments to Australian-based SMEs and debt instruments and securities issued by listed and unlisted private companies. The assets are well-diversified across industries and sectors to manage risk effectively.

Secure debt investments are carefully selected with a strict credit policy in place. Additionally, the Fund maintains a robust portfolio monitoring process to adhere to risk parameters. PS and the IM conduct thorough credit analysis and due diligence on potential Borrowers to assess their creditworthiness and repayment capability.

There are times when the Fund will not be able to deploy funds it holds into the underlying investment strategy due to delays in settlement of the Underlying Loans, shortages in the pipeline of projects, changes in the credit market and the housing market, or insufficient time to invest due to upcoming maturity of the relevant Loan Notes.

In such circumstances, the IM will deploy the Fund assets into an Incidental Strategy, which will allow the Fund to continue to maintain returns to its Investors. This strategy encompasses several elements and aligns with the Fund’s goal of pursuing income and managing risk effectively for the benefit of its investors:

  • Investing in Debt Instruments and Debt Securities
  • Short-Term Commercial Loans
  • Interest Rate Swaps

The investment period is three (3) years with an Investment Manager right to extend the period by another two (2) years. The Fund does not offer any redemptions prior to maturity.

The minimum initial investment in Loan Notes issued by the Fund is $500,000 or $50,000 and requires a Wholesale Investor Certificate.

The Investment Manager, at its discretion, may accept an initial investment amount lower than $500,000 or $50,000 where subsequent additional investments ensure the minimum balance is equal to or greater than $50,000 in the Face Value of a Series of Loan Notes within 90 days on the initial investment.

Subsequent additional investments require a minimum amount of $10,000. The Investment Manager reserves the right to lower the minimum initial investment at its discretion. Indirect investors should refer to their investor platform operator’s offer document for information on minimum initial and additional investment amounts.

The minimum initial investment in Loan Notes issued by the Fund is $500,000 or $50,000 and requires a Wholesale Investor Certificate.

The Investment Manager, at its discretion, may accept an initial investment amount lower than $500,000 or $50,000 where subsequent additional investments ensure the minimum balance is equal to or greater than $50,000 in the Face Value of a Series of Loan Notes within 90 days on the initial investment.

Subsequent additional investments require a minimum amount of $10,000. The Investment Manager reserves the right to lower the minimum initial investment at its discretion. Indirect investors should refer to their investor platform operator’s offer document for information on minimum initial and additional investment amounts.