Vest Capital Private Credit Real Estate Fund 2
Diversify your portfolio with private credit backed by Australian real estate and generate a regular income stream.
Vest Capital Private Credit Real Estate Fund 2 presents a compelling investment opportunity in the Australian real estate market.
Our experienced team carefully curates a diversified portfolio of first mortgage loans, focusing on properties with strong fundamentals and creditworthiness.
By prioritizing risk mitigation and regular distributions, we aim to deliver consistent returns to our investors. Whether you're seeking stable income or capital appreciation, Vest Capital offers a well-structured and managed investment solution.
Vest is a fund manager focusing on real estate private credit in Australia.
The Fund operates by Investors purchasing Units in the Fund. The Fund then invests into Unit Classes of the Trust, with each Unit Class being allocated to a Loan to an external Borrower. Every Loan will be secured by Australian real estate.
The interest from the Loans is paid by the Borrowers to each Unit Class of the Trust, and the returns are then paid to Investors in the Fund.
When a loan is repaid by the borrower, the capital will be paid to that Unit Class of the Trust and will then be returned to the Investors in the Fund accordingly.
Performance
Our aim as the Trustee is to deliver consistent value to the Unitholders. The Fund is targeting an annual return net of all fees to the Trustee of 6.15% + RBA Cash Rate Target per annum (Target Return).
Fund Objective
The objective of the Fund is to provide Investors with strong risk-adjusted returns by providing a diversified portfolio of First Mortgages transactions. The Fund will aim to efficiently deploy capital and will provide regular distributions to Investors as the underlying loans mature.
Investment Mandate
The investment mandate of the Fund only permits property finance transactions which are secured against Australian real estate, and includes the following:
- First Mortgage Non-Construction Loans;
- irst Mortgage Construction Loans; and
- Alternative Investment Opportunities, collectively referred to as the Underlying Investments.
Capital not allocated to Underlying Investments will be held as cash with an Australian bank.
First Mortgage Loans
Loans acquired by the Fund are subject to Eligibility Criteria and Fund Parameters and include:
- First Mortgage Non-Construction Loans are permitted;
- First Mortgage Construction Loans are permitted;
- Initial Non-Construction Loan terms are limited to 18 months or less; and
- Initial Construction Loan terms are limited to 24 months or less.
Alternative Investment Opportunities
Eligibility of a mortgage for alternative investment opportunities is subject to the condition that the Trustee, its associates or nominees hold a of 10% of the investment directly, on equivalent terms as the Fund to ensure alignment and consistency in any investment strategy. Alternative investment opportunities will not be subject to the Eligibility Criteria or the Fund Parameters of the Fund.
The Fund will focus on securing investment opportunities that align with the following investment themes:
- All Underlying Investments are documented by Vest’s panel of external legal firms and are appropriately secured.
- Real estate securities for the Underlying Investments have market appeal and sound fundamentals.
- Credit assessment of the character, capability and capacity of the Borrower is to be deemed acceptable.
- Risk mitigants to be applied to Underlying Investments where required.
- The LVR limits at a loan and portfolio level to be managed, reducing the risk of capital loss.
- Diversifying portfolio allocation in accordance with the Fund Parameters to manage risk at a portfolio level.
- The Fund’s Target Return of 6.15% + RBA Cash Rate Target, net of fees is designed to provide a competitive risk-weighted return on capital.
Redemptions will be processed subject to the available liquidity of the Fund and in accordance with the Trust Deed. The Trustee may suspend, reject or delay redemptions by the Trustee in its absolute discretion.
Unitholders are granted the following options for redeeming their Units.
Unscheduled Redemptions
Unitholders have the right to request the redemption of up to 10% of the Units they held at the beginning of a financial year, within that financial year. This request must be made by providing written notice to the Trustee.
Scheduled Redemptions
The Trust will provide four annual redemption opportunities, occurring on 31 January, 30 April, 31 July and 31 October each year (referred to as "Redemption Date").
Subject to eligibility, a Unitholder may choose to redeem a portion or the entirety of their Units on a Redemption Date. To exercise this option, the Unitholder must provide the Trustee with a notice of no less than 60 days. Unitholders are eligible for a Scheduled Redemption only if they have maintained ownership of Units for a period exceeding 12 months.
The Trustee retains the discretion to withhold or delay the payments of a Scheduled Redemption or an Unscheduled Redemption if the Trustee deems it necessary or prudent for the operation of the Fund.
All redemptions are executed at the Redemption Price.
Before joining Vest, Andrew held the position of Director of Operations at AltX, a prominent Australian private credit fund managing approximately $800 million. Andrew began his career as a management consultant and an accountant at Deloitte. He holds a Bachelor of Commerce, a Master of Financial Planning and is a Chartered Accountant.
With extensive experience spanning more than three decades in private lending and property development, Jason has originated over $500 million worth of private loans. Jason's understanding of complex loan structures and his strategic insights have contributed significantly to the growth and success of Vest Capital Pty Ltd.
Before joining Vest, Samuel's career includes roles as an analyst programmer at Macquarie Bank, Head of Architecture at eBaoTech Australia to become one of a global supplier of AIG insurance products, and contributing to SME insurance product upgrades at Allianz Australia as a Solution Architect. Samuel holds a Bachelor of Computer Engineering and Samuel has over 20 years of experience in software development and cloud architecture.
Spencer is responsible for capital raising at Vest Capital. Having previously held roles in corporate finance at Shaw and Partners. Wholesale distribution roles at Australian Unity, Contango Asset Management and Associate Global Partners. Spencer serves on the board of the Scot's College Old Boys committee. Spencer holds a Bachelor of Commerce, majoring in Finance from the University of Notre Dame along with his RG146.
Andrew commenced his career at PwC in New York before relocating to Sydney, Australia. With over 20 years' experience in the banking and finance industry, Andrew was previously Managing Director of GMC Group & Zenith Financial Services, managing over $500 million in funds under management in property funding. Andrew also held the role of General Manager of AIMS Financial Group and Forex Capital and was Head of Credit for Origin Mortgage Management, a subsidiary of ANZ Banking Group.
Justin has experience as a mortgage manager and private lender, having previously managed $165m in private loans. Justin has over 10 years of experience in sales, business development, complex loan structuring and financial analysis.
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Private credit investments refer to investments made in privately held debt securities. Private credit investments can take many forms, including direct loans to companies and other types of debt securities that are not publicly traded.
Private credit investments may be made through private credit funds which are managed by investment managers who allocate investor capital to loans in private companies.
Overall, private credit investments can offer attractive risk-weighted returns and diversification benefits to investors seeking to build a diversified portfolio of investments. However, they require careful due diligence and risk management.
Senior debt is generally considered less risky than subordinated debt and equity in the capital stack because it has priority in the event of a default. This means that senior debt investors are more likely to be paid back in full and on time.
Yes, the real estate debt investments on our platform are secured by real estate assets, providing an added layer of security for investors. We prioritise transparency, and details about the collateral and security measures are available for each investment opportunity.
We offer a diverse range of real estate debt investments, including loans for residential, commercial, and development projects. Our platform provides detailed information on each opportunity, allowing you to choose investments that align with your risk profile and investment goals.
Access to Capital
Private credit providers may offer loans to borrowers who may not qualify for traditional bank loans.
Flexible terms
Private credit providers may offer more flexible loan terms than traditional banks. This can help borrowers manage their cash flow and reduce financial stress.
Faster approval process
Private credit providers may be able to approve loans more quickly than traditional banks, which can be especially important for borrowers who need access to capital in a timely manner.
Specialised expertise
Private credit providers may specialise in certain industries or types of loans, such as real estate. This can provide borrowers with access to specialised knowledge and resources that can help them achieve their financial goals.
Wholesale investors are typically qualified by the investor's accountant, and are usually assessed on either a net worth of more than $2.5 million or an annual income of more than $250,000 per annum.
We prioritise risk management by thoroughly vetting each investment opportunity. Our team conducts comprehensive due diligence, assessing factors such as property valuation, market conditions, and borrower credibility. We aim to provide you with well-researched opportunities to make informed investment decisions.
At Vest, we understand the importance of consistent returns for our investors. We facilitate monthly income distributions for investments, subject to the performance of the borrowers and the underlying loans.
Getting started is easy. Simply sign up on our platform, complete the necessary documentation, and undergo our verification process. Once approved, you can explore available investment opportunities and start building your real estate debt portfolio.
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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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