Private Credit 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.

The net distribution return starts from 7.5%, 12% and 15% per annum (this rate is dependent on the particular Series and Sub- Fund and disclosed in the Fund’s Information Memorandum and the relevant SIM).

The frequency of distribution is semi-annually deposits into your nominated bank account.

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.

At our discretion, we 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. We reserve 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.

Private credit investments involve providing loans to private companies that are not large enough to access public debt markets. Private credit funds generally make these investments and can include direct lending, mezzanine debt, distressed debt, and other credit strategies.

Private credit funds focus on SMEs that lack access to public debt markets. However, with the growth of private credit and reduced corporate lending by banks globally, even large private equity-owned companies are increasingly turning to private credit providers for their debt funding needs instead of relying on public markets.

Examples of Private Credit Investments:

1. Direct Lending: Loans made directly to small and medium-sized enterprises (SMEs) for various purposes such as expansion, acquisitions, or working capital.
2. Mezzanine Debt: Subordinated debt that sits between senior debt and equity in a company’s capital structure, often used to finance growth or acquisitions.
3. Distressed Debt: Investments in companies that are in financial distress or undergoing restructuring.
4. Real Estate Loans: Financing for property acquisitions, development, or refinancing.