• Forward thinking. The Alternative Finance Fund. Opportunity.

The Alternative Finance Fund has been established to take advantage of changes to Australian banking regulations, which are limiting the availability of commercial finance to quality property owners and developers.

These new requirements are not temporary; they represent a permanent change to bank lending policies, and mean that major Australian banks have begun operating with a significantly reduced lending appetite – and much tighter lending parameters. The Australian commercial real estate market is now starting to follow the trends of many overseas markets, with an increased focus on private financing.

The shortage of finance is also driving up the returns available to lenders – and as a result, the Alternative Finance Fund is able to target a return in excess of 9% per annum* (after fees and expenses) whilst investing in loans that are predominantly secured by first mortgages – an income fund earning high but risk adjusted returns.

About The Fund.

The Fund is an open, pooled investment vehicle for wholesale or professional investors. Amounts raised from investors are jointly invested in a portfolio of loans that have undergone a rigorous process of due diligence and credit analysis.

As individuals, investors are generally limited to making modest investments in individual opportunities. By pooling the resources of many investors in an income fund investment, the Fund is able to participate in a diversified and balanced portfolio generally out of the reach of any individual investor.

Pooling also provides improved investment liquidity.

  • Forward thinking. The Alternative Finance Fund. Opportunity.

The Alternative Finance Fund has been established to take advantage of changes to Australian banking regulations, which are limiting the availability of commercial finance to quality property owners and developers.

These new requirements are not temporary; they represent a permanent change to bank lending policies, and mean that major Australian banks have begun operating with a significantly reduced lending appetite – and much tighter lending parameters. The Australian commercial real estate market is now starting to follow the trends of many overseas markets, with an increased focus on private financing.

The shortage of finance is also driving up the returns available to lenders – and as a result, the Alternative Finance Fund is able to target a return in excess of 9% per annum* (after fees and expenses) whilst investing in loans that are predominantly secured by first mortgages.

About The Fund.

The Fund is an open, pooled investment vehicle. Amounts raised from investors are jointly invested in a portfolio of loans that have undergone a rigorous process of due diligence and credit analysis.

As individuals, investors are generally limited to making modest investments in individual opportunities. By pooling the resources of many investors, the Fund is able to participate in a diversified and balanced portfolio generally out of the reach of any individual investor.

Pooling also provides improved investment liquidity.

The Investor Benefits.

  • Attractive returns: The Fund targets an annual return over the long-term in excess of 9% per annum (post all fees and expenses)*.
  • Regular income: Distributions are paid quarterly.
  • Mortgage security: The Fund invests in loans secured predominantly by first mortgages, often supplemented by security over additional assets and personal guarantees from the principals of the borrowers.
  • Access to exclusive opportunities: as a professional fund manager, we have access to a continual pipeline of wholesale and institutional investment opportunities.
  • Participation in larger investment opportunities: by pooling the resources of many Investors, the Fund can participate in larger projects and therefore has a greater variety of opportunities from which to choose, many of which are out of the reach of individual investors.
  • Diversification: the Fund invests in a portfolio of many loans, providing diversification by asset type, class, borrower, market location and entry timing.
  • Professional management: the Manager has a depth of experience gained in all property sectors, including small and large development, structured finance, investment origination and funds management (see Our Team).
  • Investment management: shareholders of the investment manager have invested in excess of $4 million in the Fund on the same terms and conditions as other investors.
  • External oversight: the Fund utilises the skills and experience of its Investment Review Committee, which includes a number of members with extensive experience at CEO and MD level in banking and development.
  • Selective portfolio: the Fund invests in loans in the significantly undersupplied $5 million to $15 million size range, allowing the Manager to be extremely selective in its choice of lending opportunities.
  • Capital stable investment: with equity markets experiencing high levels of volatility, and property markets looking overvalued, the Fund represents a more secure investment option, with a higher return* than traditional fixed interest alternatives.
  • Improved liquidity: investors will generally have an opportunity to redeem their investment whenever any one of the Fund’s many underlying loans mature.

If you are an interested wholesale or professional investor, the steps to get started are:

  1. Download the Investment Summary for the Alternative Finance Fund;
  2. If you are not sure if qualify as a Wholesale or Professional Investor call us;
  3. Sign up via the enquiry form to receive the full Investment Information Memorandum and we will contact you shortly thereafter.
  4. Or alternatively, telephone East Coast enquiries on + 61 3 8680 2490 or West Coast enquiries on + 61 8 9288 4590; and
  5. If we are not available to take your enquiry immediately, we will return to your call shortly.
*Targeted return (net of fees and expenses) of the Alternative Finance Fund (Fund). This return is not guaranteed and is subject to risks. The Information Memorandum for the Fund contains important information about the Fund, including the risks and fees associated with the Fund, and must be read in full before making a decision to invest.  An investment in the Fund is only available to wholesale investors as defined in section 761G of the Corporations Act. The trustee, Alternative Finance Custodians, is an Authorised Representative of PrivateInvest Securities Pty Ltd ACN 160 148 078, which is the holder of Australian Financial Services Licence no. 427 666.