Waratah Debt Capital Fund

Mark has over 20 years of expertise in corporate finance and banking and has served as a specialist financier to the hotel industry with two major banks. Mark established Waratah Debt Capital to engage a targeted and specialised approach in leveraging his industry-specific acumen to provide sophisticated debt structuring as an enhancement to traditional finance options.

With an extensive background as a specialist financier for this niche, Mark is at the forefront of emerging industry trends, market shifts and future growth opportunities. Mark has a Bachelor of Business and a Master of Applied Finance (Corporate Finance) and is a Commissioner for Declarations.

Scott has over 17 years’ experience in banking and finance spanning multiple sectors and geographies.
Throughout his time in banking Scott has held roles working in corporate lending, derivative structuring, fund finance, financial sponsor coverage, private credit and credit investor coverage. Prior to joining Waratah Debt Capital, Scott’s most recent role was looking after the Commonwealth Bank’s Major Client Group exposure to Hotels and Hospitality in QLD.

Scott holds a Bachelor of Commerce majoring in accounting & finance and is a current member of Chartered Accountants Australia and NZ.

Darren Baker is a seasoned hotel industry professional with over 30 years of ownership and operational experience. Serving as Director and Responsible Manager at Tankstream Capital during the inception of the Tankstream Pub and Leisure Fund (now Waratah Hotel Group). Darren’s expertise spans hotel operations, investment fund management, and hotel portfolio management. His strategic leadership and hands-on expertise have played a pivotal role in the success and growth of Waratah Hotel Group, showcasing his commitment to excellence in the hospitality sector.

David is a Chartered Accountant with over 25 years’ accounting, business and tax experience. David has his own Chartered Accounting practice and has significant experience in asset sales, acquisitions, business integrations, public listings and takeovers. David holds a Bachelor of Business and a Graduate Diploma of Applied Finance and Investment.

Bob East has more than 20 years’ experience in the tourism, hospitality and property sectors. He is Chair of Australia’s second largest pub group Australian Venue Co, operating over 200 venues. Bob also Chairs the Gold Coast Suns (AFL), ASX listed Experience Co Ltd (EXP), ASX listed Cettire Ltd (CTT) and Leisure Accommodation Collective. Bob also previously Chaired Tourism Australia and Tourism Events Queensland.

Bob was the CEO of the Mantra Group and developed the company into the largest Australian based accommodation provider growing to more than 140 properties. He led the company to a successful ASX listing in June 2014 which culminated in its inclusion into the ASX 200 list in 2015 in its first year as a public company. Bob then led the acquisition by ACCOR realising a sale price of $1.3 billion enterprise value for Mantra Group investors.

Bob holds a Master of Business Administration.

Phil is a current Managing Director of Stepstone Group (Nasdaq: STEP) a global investment firm that develop and build private market portfolios across private equity, infrastructure, private debt, and real estate asset classes. StepStone’s clients include some of the world’s largest public and private pension funds, sovereign wealth funds, and insurance companies, as well as prominent endowments, foundations, family offices, and private wealth clients.

Phil spent 13 years with Queensland Investment Corporation (QIC) where lead the venture and growth equity investment activity across directs, funds and secondaries. Phil also served as chairman and CEO of one of QIC’s portfolio companies The North Australian Pastoral Company Pty Ltd (NAPCO), as well as holding a number of other board positions. Phil has also worked with BT Alex. Brown, Deutsche Bank and Thomas Weisel Partners in San Francisco and has advised on over 3.2b of capital raisings and 12 M&A transactions.

Phil holds a Bachelor of Commerce, is a Chartered Financial Analyst and a member of the Institute of Chartered Accountants Australia and New Zealand.

The Fund is open ended meaning there are no set liquidity events. Investors should however expect their investment to be for 3-5 years as a minimum as the underlying assets are mortgages which are illiquid in nature and may have up to 3 years in tenure.

Requests for redemption can be made at any time and will be fulfilled subject to the Fund's liquidity. If an investor wishes to redeem units they simply need to complete a redemption request and provide this to the Trustee. Redemptions that are required in less than 30 days may attract a fee if successful (as per information memorandum) and are free if an investor is happy to wait more than 30 days.  

No. The Fund is a pooled fund meaning funds under management may be spread across many mortgages. The only time an investor will have direct exposure to a single loan is when only one loan exists in the fund.

The Credit and Investment Committee is responsible for ensuring that any loans settled will adhere to the underwriting standards establsihed for the fund. 

The Credit and Investment Committee is made up by at least one Director from the Investment Management company; one Director from the Fund’s trustee and at least one Investment Committee representative.

The Fund is an illiquid fund meaning redemption of units are subject to the Fund’s liquidity at the time of redemption or the Investment Manager’s ability to attract additional investment. Units cannot be sold or traded and any requests of redemption need to be made to the trustee. Avenues of liquidity include:

• loans being repaid from Borrower cash flow;
• loans being refinanced back to major banks;
• hotels being sold and debt being repaid;
• additional investors joining the fund;
• The fund itself borrowing to allow for increased liquidity. 

Waratah Debt Capital Fund was established in March 2020. Due to the Impact of Covid-19 on the industry it didn’t complete its first transaction until September 2020. This loan was repaid in full via a refinance to ANZ in August 2021 only 11 months into its 36-month term. Another senior loan was settled in November 2022 for $3.45m and repaid in full in April 2024. 

The fund has undertaken a number of smaller transactions in full and received full debt repayments. Several indicative term sheets are now signed for transactions in excess of $40 million. 

We are currently seekine expressions of interest to fulfill our current pipeline of opportunities and fund a continual book build to $50,000,000.

Waratah Debt Capital have engaged Mullins to prepare and manage our borrower’s loan and security documents including mortgages, company charges and personal guarantees.

As an industry lender that is exclusive to the Hotel industry, it was essential for the Fund to engage a law firm who also specialise in this industry. Mullins, under the stewardship of Managing Partner Curt Schatz have unrivalled experience in the liquor and gaming sector which has been developed over 35 years.

Mullins are a Diamond Partner of the Queensland Hotels Association (QHA). Curt is a key advisor to the QHA and a regular contributor to the Association’s monthly publication and annual Hotel Symposium. Curt has developed a team of specialist Property and Hospitality Lawyers, renowned for their experience in hotel, pub and club transactions.

“We are pleased to have been engaged by the Waratah Debt Capital Fund for the provision of legal services and the preparation of its lending and security documentation. Our intimate understanding of the Australian Hotel Industry will allow the Fund every chance of protecting its interests as well as working closely with other senior lenders. It is pleasing to see the emergence of a dedicated lender to this industry”.

Curt Schatz