Dorado First Mortgage Fund
An open-ended fund targeting a minimum net investor return of the RBA Cash Rate plus 4.0% p.a. (For Wholesale Investors Only)
Investment Highlights
Fund Performance
The Fund will invest with a target minimum net investor return of the Reserve Bank of Australia Cash Rate plus 4%p.a. (“IRR”; 8.35%p.a. as at June 2024)
The Fund invests in first mortgage loans targeting a minimum net investor return of the RBA Cash Rate plus 4.0% p.a. (8.35% p.a. as at August 2024). Surplus cash within the Fund will be invested in cash or cash equivalents (for example, basic deposit products or cash management trusts) which may accrue a nominal interest rate.
Any returns will be dependent on the proportion of Fund assets allocated to cash or cash equivalents at any given time. Returns are not guaranteed.
Origination
The underlying loans are originated through numerous channels, including a strong network of existing relationships with developers and industry brokers.
Preliminary Risk Assessment
Each underlying loan undergoes a preliminary risk assessment by the Manager to determine the suitability of such opportunities. Potential transactions are also reviewed to ensure that they fit the Fund’s investment parameters.
Detailed Due Diligence
The Manager’s highly qualified team of analysts undertakes a thorough due diligence process using a rigorous investment framework on all investment opportunities that clear the preliminary risk assessment. The analyst team looks deeply into the suitability of the borrower, the strength of the borrower’s investment strategy, the nature of the security, and the viability of the exit. The analyst team observes quantifiable measures, such as any valuations, the size of the opportunity, the proposed rate, as well as the timing and magnitude of the cash flows. The analysts also make use of their wealth of experience to judge the viability of the project using qualitative measures, such as the quality of planning, design, marketing, assumptions, as well as builders, developers and project managers.
Investment Committee Review
The Investment Committee critically reviews the outcome of the analyst team’s detailed due diligence. The Investment Committee also considers the broader implications on the Fund’s portfolio, including comparing the opportunity to other potential investments, the impact on the risk of the Fund’s portfolio, the timing of returns, and other capital requirements. A loan will not proceed without the unanimous approval of the Investment Committee.
Settlement Process
Once the loan has received the unanimous approval of the Investment Committee - the loan transaction is completed with the assistance of the Manager’s support team that ensures that all appropriate documentation is in place, and that investor funds are appropriately managed.
Loan Management
The underlying borrower’s projects are monitored by the Manager. The Manager monitors the progress of each project, including cash flows, project progress, and other deliverables on which the project’s completion is dependent. The Manager aims to reduce the risk of the underlying borrower’s non-performance by seeking to identify and resolve any issues early. The Manager also encourages a culture of collaboration, and seeks to provide any assistance it can to transaction counterparties.
Tim is a co-founder and Director of Dorado Property and has 36 years’ experience at CEO and senior executive levels in the accounting, finance, stockbroking and property industries with major businesses in Australia and North America. Tim provides strategic direction to the Dorado Property business and his experience and network are valuable to developers and landowners across a broad range of commercial areas.
Peter is a co-founder and Director of Dorado Property with a background in project management, development and real estate advisory. His key roles include working closely with Dorado’s select investors, providing strategic direction to the business and leading Dorado’s work with landowners to protect and enhance biodiversity on their properties. Peter’s 17 year career has provided him with an in-depth knowledge of the property industry and allows him to provide valuable insight and assistance throughout the project life cycle.
Andy Moore applies his background in financial services advice and business process technologies to streamline and optimise all areas of the business. Graduating from University of Western Australia with a Bachelor of Commerce, Andy has 5+ years experience across Deloitte and RSM in roles including Auditor, Paraplanner, and Financial Advisor.
Statutory Statement
This offer of scheme interests is available to wholesale clients only. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
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