Secure, Stable, High Yielding Investment
Investor capital in the Fund remains well secured.
The current Loan to Security Value (LVR) ratio is 55%. This means for every $1 invested the Fund holds $1.82 in mortgage security.
80% of the Fund’s security is 1st mortgages, with the remaining being 2nd mortgages or other security agreements.
All loans made by the Fund to successful Australian businesses are operating within the approved, legally documented terms and conditions. There have been no arrears or defaults on loans since the inception of the Fund.
Capspace Private Debt Fund investors will continue to receive an interest payment at our target rate of return of 8% per annum for May 2022. This is the 27th month in a row of this high yield for Investors.
FUND GROWTH
The Fund continues to grow rapidly, due to significant investor and borrower demand for our financial products.
The recent volatility in financial markets driven by the spectre of entrenched high inflation and rising interest rates means investors are attracted by the stable non-correlated returns with strong capital protection.
Our borrower pipeline is growing rapidly as more businesses want to partner with Capspace given the quality of our service and support. Over the month we have expanded our broker footprint, meaning more quality loan opportunities are presented to us. We have over $20 million of new loans in the pipeline to draw in the next few months.
