Capital Raising

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Capspace Private Debt Fund

Creating Secure Sustainable Wealth

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INDUSTRY

Fund Management

RAISING

Open Ended

MINIMUM INVESTMENT

A$50,000

Investment Highlights

Company Overview

Transaction Overview

Additional Information

Team

Transaction Summary

Capspace Private Debt Fund

Open Ended

A$108M Raised so far

A$50,000 minimum

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Investment Highlights

A$108M raised to date

Stable and competitive returns paid monthly. BBSW + 5% (9.31% as at January 2024)

Target return 8-10% achieved since inception in 2020

Strong capital security – 59% Loan to value ratio (LVR) with predominately 1st mortgages (as at January 2024)

Robust security structure – Registered mortgage over real property, GSA’s over business assets and personal/director guarantees

Independently reviewed - The underlying assets taken as security by the fund received a high-quality rating from independent firm, Performance Property Advisory, with primarily A grade residential assets held as security

Finalists: 'Non-Bank of the Year' and 'Innovator of the Year'

Company Overview

Private Debt Fund

Focused on providing commercial loans to SME’s secured by real property, business assets and directors/personal guarantees

Market leading borrower origination

Quality deal flow referred by accountants and experienced commercial finance brokers

No construction lending

No lending for apartment and large-scale developments

Commercial loans

Ranging from A$500K to A$5M with terms up to 3 years

What is Capspace?

Capspace is an investment fund emerged from one of Australia’s largest independent finance broking businesses with a portfolio of $1B+ in loans under management, awarded numerous accolades, to a successful fund manager.

Disappointed by the banks’ inability to deliver effective outcomes and the shortage of reputable private lenders catering to small and medium-sized enterprises (SMEs). They funded back-to-back transactions from 2018 and later expanded to Capspace, a diversified Managed Investment Scheme in 2020.

Secure Lending to SME Borrowers

Capspace delivers returns to investors by providing loans to high-quality SME borrowers for whom the banks would love to help but can’t. Capspace supports them by offering fair and transparent loan terms which are secured by real property and business assets.

Their ethical and progressive approach is revolutionising the non-bank lending category and has seen the fund experience significant growth since its inception.

Competitive Advantage

Highly experienced Directors, Managers and Legal team with experience through different lending cycles

Quality deal flow originated from long term relationships with accountants and some of the most experienced commercial brokers in the country

Transparency with independent reviews of underlying assets by Performing Property Advisory

All loans assessed through Capspaces disciplined review procedures to ensure compliance and performance and have a robust Capspace security structure

Capspace does not do construction lending for apartment and large scale developments

Capspace Loan Security Structure

Capspace Target Market

Capspace: $500K – $5M

Banks unable to compete on agility, commerciality and loan terms
Low exposure to construction risk
Businesses generating cash flow, secured by real property
Robust multiple security structure
Diversified across multiple loans

Why SMEs Choose Capspace

Speed – Days vs Months

Service & SME Knowledge – Direct involvement by decision makers with > 100 years of experience combined with strong business acumen

Outside Bank Strict Lending Criteria – SMEs don’t quite meet the stringent requirements

Growing Business with a Trade-Up Period – New businesses that need trading records before banks consider

Asset Rich, Cash Poor – Funding based on agreed asset sales

Transaction Overview

Terms of offer:

Option 1: BBSW + 5.00% (currently 9.31% p.a. as at January 2024).
Option 2: Fixed return of 8.00% p.a.

Distributions: Paid monthly.

Compounding interest available? Yes

Minimum investment time frame: 12 months

Redemptions: 60-day notice. Please refer to IM for terms.

Use Of Funds:

100% of any investment into Capspace Private Debt Fund is allocated to units in the Master Trust of the Fund issued at $1.00 per unit. The Trust is the lender and security holder for all SME commercial loans made by the Fund.

Additional Information

Team

Management

Tim Keith

Managing Director, Chair of Credit Committee

John Encina

Director & Head of Loan Origination, Member of Credit Committee

Julio Labraga

Director & Head of Property, Member of Credit Committee

Daniel Dusevic

Director & Head of Investment Origination, Member of Credit Committee

Sarina Roppolo

General Counsel, Member of Advisory Board

Phillip Almeida

Property Adviser, Member of Advisory Board

Lea-Anne Warren

Operations Manager

Nicholas Martino

Senior Credit Risk Manager

News

June 2024

Leaving room in SMSF portfolios for high yield debt investments

May 2024

Housing shortage to worsen as property prices gain momentum

April 2024

Lending solutions gaining traction in the SME space

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