As an investment fund manager with an impressive pedigree in funds management and non-bank lending, PrivateInvest combines the best of larger and smaller financial services providers to deliver institutional grade service and investment solutions for wholesale and sophisticated investors.
Our track record of delivering above industry average risk weighted returns – which we have achieved without compromising investment stability – evidences the strength of our service delivery model and our approach to identifying quality real estate projects and assets.
By using the PrivateInvest capital underwriting in our investment Funds avoids the risk of being overweighted in cash which dilutes investment returns. As an active investment fund manager, we use daily monitoring of our capital against loans to avoid being overweighted in cash. To protect existing investors returns we do, from time to time, say no to new incoming capital.
The result has established trust with our investors who have received above industry average risk weighted returns across all Funds, with no loss of capital or impairment in our history.
The First Mortgage Fund is a “pooled fund” comprising of strictly registered first mortgages and has returned a historical 8.25%+ per annum, post fees and expenses, cash investment return since inception four years ago. It has excellent liquidity, diversification, and the benefit of monthly investor distributions to your bank account.
Our Select Mortgage Trusts offer generally larger, individual registered first mortgages for investors seeking direct investment, allowing for further control of your risk management in the loan, or loans, you select to invest in.
Investors pursuing returns further up the risk curve are suited to the Capital Trusts instrument which offers registered second mortgage and preferential equity placements.
The suite of PrivateInvest products is rounded off by the Impact Investments Trusts which are designed to provide a platform for investors to make a positive difference in the community.
Whilst there is a broad choice for our investors, the same investment philosophy applies across all products: a high focus on capital preservation, investment stability, and achieving quality above industry average risk weighted returns.
We achieve this by identifying high quality Australian real estate investment opportunities – taking a robust but flexible approach to loan assessment and portfolio management.
PrivateInvest has an active eagle eye over all its investments and ensures its investors remain informed through high quality, institutional-grade investor reporting. PrivateInvest prioritises relationship building and personalised service.
To invest in one of our Funds, you must be qualified as a wholesale or sophisticated investor (as defined in section 761G of the Corporations Act). If you are unsure whether you meet this criteria, contact our Investor Relations Team for more information.
The minimum Application Amount for investment is $100,000 and thereafter in $10,000 multiples, although the Trustee may accept lesser amounts in its absolute discretion.
The Fund is a pooled, open-ended, unregistered Unit Trust for wholesale and sophisticated investors, meaning it is always open for investment.
Distributions are paid monthly, or reinvestment into the Fund.
The Fund targets a return between 7.50% and 8.25% per annum, post fees and expenses. Utilisation of PrivateInvest Underwriting allows the Fund cash to be retained at desired levels to avoid diluting investors returns. The Fund has historically outperformed target returns for the past 4 years.
First mortgage security aligned with a rigorous credit approval process and properly priced lending interest rates that supports stable investment distributions.
The Fund’s strategy is to invest in an Australian national portfolio of loans, providing diversification by asset type, class, borrower, market location and entry timing. PrivateInvest database has in excess of 200 active finance brokers that receive correspondence from PrivateInvest twice weekly which assist in providing a consistent flow of new loans for credit assessment.
Average weighted sub 65% LVR and supported by Directors, or personal guarantees, which further hedges default recovery and downside risk in declining markets. Robust lending policy around the current challenges in the Australian construction industry on supply chain and labour costs. The Fund has had no loss of capital or impairment in its history since inception.
Targeting commercial and industrial loans with less weighting on residential loans. Loans usually have a bridging strategy with refinance by mainstream ADI Banks. Other loan exit strategy is sale into Real Estate Investment Trusts (REITS).
Investors can redeem their investment in part or in full, whenever one of the Funds underlying loans mature, or is redeemed by new investor subscriptions. Loans are constantly maturing and new capital inflow provides excellent liquidity.
Management fee of 1.95% per annum payable monthly in arrears, calculated on the total Funds Under Management (FUM). The Trustee is entitled to an annual fee of 0.25% of the Gross Asset Value of the Fund, payable monthly in arrears, subject to a minimum monthly payment of $6,000.
Minimum application $100,000, and thereafter in $10,000 multiples.
Our team is always accessible and accountable to our investors and are dedicated to creating long term value and exceeding their service expectations.
Our experience and understanding of the property finance industry allows us to identify the highest-quality real estate loans for investment.
PrivateInvest understands the factors that drive the success of specific projects and undertake comprehensive and targeted due diligence activities to assess the viability of finance applications. We also consider a range of indicators such as monetary policy and industry developments when assessing and managing loans. At present, a tightening monetary environment and prolonged strain on the construction industry is at the forefront of our technical management team’s due diligence for new loan enquiries and the management of existing loans.
Our flexible risk assessment model is bolstered by our robust internal controls that oversee all aspects of our business including risk analysis and mitigation, governance, and regulatory compliance. This is further overseen by our Independent Trustee Directors and an independent external compliance specialist. Importantly, PrivateInvest is unencumbered by the strict regulatory controls and internal constrains that have driven up inefficiencies in the banking sector. Our Investment Review Committee provides an impartial oversight on new loans to ensure that our risk assessment model remains airtight.