Investment Philosophy
The Fund seeks to make investments in Australia across a range of debt transactions with businesses.
The Fund will invest in:
- first ranking corporate debt by providing business loans in return for first ranking security over the businesses, with minimum requirements in respect of financial covenants regarding cashflow and interest cover; and
- fixed income and cash strategies.
In selecting appropriate businesses for lending purposes, the Fund will target:
- businesses with regular, reliable and sustainable income streams;
- businesses in the industrial sector, with a proven and profitable business model; and
- loan amounts of up to three times the cashflow and at least four times interest cover on individual businesses.
The Fund will not invest in cyclical businesses such as those involved in real estate, mining or technology.
Loan funds may be used for:
- expansion capital;
- industry consolidations;
- management buy-outs;
- public to private transactions.
The Fund will seek to hold investments for between three and five years. Investors must commit to a minimum six-month investment period in the Fund.