Capstone Income Fund

The Capstone Income Fund is a debt fund available to wholesale investors with a diversified portfolio of registered mortgages over Australian property assets. The Capstone Income Fund offers secure, competitive risk-adjusted returns that gives investors the opportunity to benefit from diversified debt investments with Australian property as security. The Fund is managed by an experienced management team and focuses on a high-quality portfolio of loans that is diversified, relatively liquid and adhere to strict loan criteria and credit approval requirements. The Fund provides a 10% p.a. target return to investors¹, with distributions paid monthly, offering stable competitive income from a Fund that is backed by real property assets.

Investing Activities of the Fund

• The Capstone Income Fund is a debt fund with a diversified portfolio of short-term investments backed by
  mortgages over Australian property assets
• Property assets the Fund lends to includes established residential, land developments and residual stock of completed builds
• The Fund targets a portfolio Loan to Value Ratio between 65% - 70% to ensure there is sufficient headroom for repayment in the event of valuation decline

Investing into the Fund

• The Fund aims to provide a fixed 10.0% p.a. return for Investor Units with monthly distributions¹.
• Investor Unitholders may exit their investment at any time (subject to cash availability of the fund).
• The Fund operates as a unit trust with two classes of units, Investor Units (90-95%) and Management Units (5-10%).
• Capstone’s funds offer a unique capital preservation feature, where Management Units are “first loss” to Investor Units. This feature gives significant capital protection to Investor Units and aligns management interests with the fund’s success.
• The Fund is backed by an experienced debt investor and fund management team.
• The Fund and investment manager have not had a capital loss in 100+ debt investments.

The Capstone Income Fund unlocks the power of property returns to investors by investing in a high-quality diversified portfolio of Australian property mortgages secured against assets such as residential properties, commercial properties, or residual stock properties from recently completed developments (with no major construction exposure).

The Fund has strict investment criteria, risk management and credit analysis procedures before making any loans from the Fund, with all investments requiring unanimous approval from the Fund’s Investment Committee. Management consist of 5-10% of the Fund with the management investment acting as first-loss to other investors for both the investor return and capital. This is a unique capital preservation feature offered by the management of the Fund, further protecting investor’s capital and ensuring a true alignment of interests as management has “skin-in-the-game”. Their first-loss commitment ensures that the management stands behind every investment made on behalf of the fund.

• The Manager seeks to invest the Fund’s capital into a diversified portfolio of Investment Loans, where each loan has Australian property assets as security.
• All Investment Loans have an LVR equal to or lower than 75%, noting the current LVR is <60%.
• The majority of the loans will be registered first mortgages.

Investment Criteria

Investment loans will satisfy the following criteria:

^* Periodically assessed by Investment Manager and adjusted if required to remain market competitive

^** At time of loan settlement. Applicable after the first year of the Fund’s operation.  

1. Returns are a target of the Fund and are not guaranteed.

MacDonald Capital Pty Ltd ACN 642 520 474 (MacDonald Capital) is a corporate authorised representative (CAR) (CAR Number 1292288) of Boutique Capital Pty Ltd ACN 621 697 621 (Boutique Capital) AFSL 508011.

Any information or advice is general advice only and has been prepared by MacDonald Capital for individuals identified as wholesale investors for the purposes of providing a financial product or financial service, under Section 761G or Section 761GA of the Corporations Act 2001 (Cth). Any information or advice given does not take into account your particular objectives, financial situation or needs and before acting on the advice, you should consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If any advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument and consult your own professional advisers about legal, tax, financial or other matters relevant to the suitability of this information.

Any investment(s) summarised are subject to known and unknown risks, some of which are beyond the control of MacDonald Capital and their directors, employees, advisers or agents. MacDonald Capital does not guarantee any particular rate of return or the performance, nor does MacDonald Capital and its directors personally guarantee the repayment of capital or any particular tax treatment. Past performance is not indicative of future performance.

All investments carry some level of risk, and there is typically a direct relationship between risk and return. We describe what steps we take to mitigate risk (where possible) in the investment documentation, which must be read prior to investing. It is important to note that risk cannot be mitigated completely.