PrivateInvest First Mortgage Income Fund
Investment in regular stable yield income backed by a diversified portfolio of first mortgage security
Flagship First Mortgage Income Fund
The First Mortgage Income Fund is a pooled, open-ended, unregistered Unit Trust comprising of strictly registered first mortgages and the benefit of monthly investor distributions to your bank account.
The objective of the Fund is to provide wholesale and sophisticated investors with a professionally managed exposure to a nationally diversified portfolio to commercial finance secured by registered first mortgages over real estate. Contact a member of our team to find out more, or request an Information Memorandum below.
First Mortgage Income Fund Overview
The investment benefits of our flagship first mortgage fund
Target Returns: 8.25% to 9.25% per annum, post fees and expenses.
Investment Structure
The Fund is a pooled, open-ended, unregistered Unit Trust for wholesale and sophisticated investors, meaning it is always open for investment.
Regular Income
Distributions are paid monthly or can be reinvested into the Fund.
Investment Returns
The Fund targets a return between 8.25% and 9.25% 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 met its target returns since inception with no impairments, loss of capital loss.
Yield Quality and Stability
First mortgage security aligned with a rigorous credit approval process and properly priced lending interest rates that supports stable investment distributions.
Diversification and Loan Origination
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. Privatelnvest has a national database of finance brokers that provide a consistent flow of new loans for credit assessment.
Low on Risk Curve
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.
Portfolio Repayment Strategy
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).
Liquidity
Investors can redeem their investment in part or in full whenever one of the Fund’s underlying loans mature or is redeemed by new Investor subscriptions. Loans are constantly maturing and new capital inflow provides excellent liquidity.
Management Fees and Trustee Fees
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 Investment
Minimum application $100,000, and thereafter in $10,000 multiples.
How To Apply For Investment
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.
Our flagship PrivateInvest First Mortgage Income Fund is currently accepting investor applications.
To invest in our PrivateInvest First Mortgage Income Fund, 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 or would like to find out more, contact a member of our team, or watch the video below.
“We strive to provide investors with a professionally managed and diversified portfolio of commercial finance secured by registered first mortgages. Our commitment to capital preservation is evident, with no impairments or capital losses since the Fund’s inception.”
Naomi Roberts – Director – Legal – Investor Relations, Trustee Board Member
Investing With Us
Capital Preservation +
Higher Risk Adjusted Averages
PrivateInvest offers alternative investment opportunities in registered first and second mortgage property security for wholesale and sophisticated investors within the Australian market. Since our inception, we have maintained a record of no impairments or capital losses, emphasising a strong commitment to capital preservation while delivering above industry average risk-weighted returns. PrivateInvest investments options include the First Mortgage Income Fund and Select Mortage Trust.
Borrowing From Us
A Capital Partnership Approach to Project Financing
As a non-bank lender, PrivateInvest offers an extensive range of financing solutions for Borrowers and Brokers. Our specialised technical management team understand the importance of a timely decision-making and credit process.