Your Investment – Your Choice – Your Option
Do you have an interest in, or have investments in the Commercial Private Credit Market, financing property transactions?
1. Fund Investment
Invest into our flagship PrivateInvest First Mortgage Income Fund.
The Fund is a pooled open- ended, unregistered Unit Trust for wholesale and sophisticated investors. Investors are paid monthly distributions. No impairments or write downs since inception in August 2018. The June 2024 distribution was 9.72% per annum, net of fees and expenses. Return since inception is 8.85% per annum, net of fees and expenses.
2. Investment Mandate
Provide PrivateInvest an investment mandate for PrivateInvest to originate first mortgage loans for you and syndicate the loan with PrivateInvest.
An Investment Mandate is an agreement between PrivateInvest and your nominated entity to originate the loan types you seek to invest in. PrivateInvest has deep relationships with larger broking houses and an extensive national data base of over 10,000 commercial Brokers, which means we can find the right loan for you.
3. Co-Invest Opportunities
Invest with PrivateInvest on a pari passu basis in single first mortgage loans that we originate and we provide the additional capital.
With both parties having “skin in the game”, both parties share the risk and return of the co-investment opportunity. Better outcomes can be achieved when aligned resources work together.
4. Managing Credit Books
You may already have a commercial debt book and wish to reduce the time, effort and resources that are required to manage this loan book by engaging PrivateInvest to manage this loan book on a Fee for Service basis for you.
The management of loan books is very active, with detailed credit analysis, governance and compliance regimes needing to be in place. Outsourcing these processes by engaging with PrivateInvest can potentially mitigate risk and increase your returns.
5. Special Situation Opportunity Trusts
At PrivateInvest, we specialise in senior debt, mezzanine debt, preferred equity, and hybrid debt instruments.
Our expertise attracts investment opportunities in distressed assets and restructuring property transactions. With our extensive network, we identify underperforming or defaulted investments, negotiate favorable terms, and structure deals that offer excellent returns while minimising risk. Our proactive approach ensures we effectively manage these complex opportunities.
Company Overview and History
■ PrivateInvest was founded over a decade ago by the Roberts Family based off a long history in property development, large scale property, asset and facilities management, both in listed and unlisted sectors.
■ It then established PrivateInvest Credit Pty Limited (Investment and Facility Manager) in August 2018, to provide investment opportunities to wholesale and sophisticated investors through its lending to qualified borrowers in the Australian commercial property sector.
■ PrivateInvest Credit is now its core business activity, which is a 100% subsidiary of PrivateInvest.
■ At its inception, the major shareholder of PrivateInvest Credit was the Roberts Family with a holding of 55% shareholding with two other parties holding the other 45% share.
■ In late 2022, the Robert’s Family purchased the other two families 45% share of the business share and another Senior Member of the PrivateInvest team took a 3% stake. Shareholders of PrivateInvest are now the Robert’s Family 87% and two Senior Staff with 10% and 3% shareholdings.
■ PrivateInvest has evolved its business model to combine the best of large and small sized financial service providers to deliver a personalised service to both investors and borrowers.
■ As an Investment Fund Manager in non-bank lending, with an impressive pedigree in funds management, we are large enough to offer Fund Investments, Investment Mandates, Co-Invest Opportunities, Management of Commercial Credit Books or assist with Capital Raising within the property sector. However, we remain small enough to ensure both borrowers and investors have direct access to all team members when required to leverage the expertise, industry leadership, and governance expected of major financial institutions.
■ PrivateInvest has currently over 120 existing wholesale investors consisting of high net individuals, ultra-high net individuals (“UHNW”) and Family Offices. Additionally, we have developed a significant list of Family Offices and UHNW investors for future capital origination.
Company Overview and History
■ PrivateInvest does not seek capital through advisor platforms or from retail investors. Instead, our business model focuses on creating bespoke solutions for Family Offices investing in the commercial property sector. This direct market positioning differentiates us from our competitors.
■ To d ate, all investment growth has been achieved with minimal external marketing, relying primarily on referrals.
■ Our loan origination initially established through large broking houses, has expanded to include over 10,000 commercial brokers in our database. PrivateInvest has developed a marketing campaign to leverage this network for loan origination.
■ The core essence of our business model is captured in our name, PrivateInvest. As our Funds grow, our strategic objective is to maintain our “Big Enough. Small Enough.” positioning. We aim to be the best in class and sector, focusing on being an optimum funds management and commercial credit provider. This corporate investment objective can align with strategic partners that have similar objectives upon further investigation by both parties.
■ The alternative commercial credit property sector is not a business that is learnt overnight. Getting the right balance of resources and systems takes hard work. PrivateInvest has learnt from past experiences in the sector, which has strong growth potential to scale the PrivateInvest business.
■ Having offices based in Perth and Sydney allows PrivateInvest to service both the Eastern and Western seaboards of Australia with a national spread of loans. We share our Sydney office with a major commercial construction company, multi-family office and a large real estate investment trust. This allows access to sector specific market intelligence.
A Snapshot of PrivateInvest
Key Loan Portfolio Investment Metrics
Non-Bank Lending Commercial Real Estate
The Rise of Non-Bank Lending: A Decade of Growth and Strategic Realignment Around the World
Around The World
■ S&P Global estimates that the global private debt market has grown tenfold in the past decade (2011-2021).
■ In 2008, in the US and Europe, Banks held a 55% share of first mortgage lending (NonBank Lending 45%). By 2019, this composition had inverted to 21% and 79%.
■ According to the European Central Bank, since the GFC in 2008, “the overall growth in financial assets can almost entirely be traced to non-bank entities which now represent more than half of the total financial asset holdings in the euro area”.
A demonstrated global shift in the deployment of debt via Non-Bank Lenders has seen investors realign their portfolio strategy through:
■ An emergence of demand towards private debt funds and away from volatile equities markets, meaning lower volatility and stable, risk-adjusted returns.
■ Overseas investors, particularly Asian domiciled, are taking advantage of Australia’s growing Non-Bank Lending sector.
Non-Bank Lending Commercial Real Estate
Australia’s Non-Bank Lenders Gain Market Share Amid Shifting Funding Dynamics
In the Australian Market
■ Traditionally in Australia, Non-Bank Lenders have had limited exposure to large capital mandates, restricting their market share compared to Banks which have regular access to cheaper and more diversified funding e.g. deposits.
■ The market share of Australia’s ‘Big Four’ Banks in CRE lending is falling, currently at 70.3% in Q2 2022 and well below its 10-year average of 78.2%.
■ Driving the falling market share is a lack of appetite for early-stage construction and land subdivision loans, with Banks restricting first mortgage LVRs to 50-55%
compared to their Non-Bank peers which remain at 60-65% LVR.
Given the prevailing local market conditions, coupled with the demonstrated success of the sector globally:
■ Non-Bank Lenders, which are not subject to increased regulation brought about by changes in APRA lending guidelines, are now attracting further institutional capital, for example:
Non-Bank Lending reached a record high of $287.94 billion in 2021-22 and is forecast to grow 16.92% through to 2026-27 ($336.67 billion).
Non-Bank Lending Sector Growth In Australia
The Funds and Process
The PrivateInvest First Mortgage Income Fund (“Fund”) is PrivateInvest’s flagship Fund and offers sophisticated investors monthly income derived from property loans which provides returns uncorrelated to listed instruments.
The Fund is a traditional ‘pure play’ private debt strategy, which has nil exposure to subordinate debt and no debt leverage (gearing). PrivateInvest Credit Pty Limited (Investment and Facility Manager) focuses exclusively on property finance, by offering short term loans typically between 6 months to 2 years which are secured by registered first mortgages. The Fund is independently audited, which is unusual for a wholesale fund, as wholesale funds are not required to be audited unlike retail funds. This is part of PrivateInvest’s rigid c ompliance framework.
PrivateInvest applies a high level of governance to the Fund. The Trustee has external nonexecutive Directors on its Trustee Board, its Compliance Committee and Investment Review Committee, and has engaged independent Registry Services.
The First Mortgage Income Fund is a “pooled fund” comprised of registered first mortgages.
The First Mortgage Income Fund seeks exposure to a diversified range of private debt loans (secured by first mortgage) mostly construction and civil works, with an exclusive focus on commercial property development opportunities. The types of loans may vary across commercial and industrial projects, site finance for land and land development, residential projects and residual stock projects.
The Select Mortgage Trusts offer larger, individual registered first mortgages for investors seeking direct investment, allowing investors to select the loan.
The Capital Trusts instrument offers registered second mortgage and preferential equity placements, for investors pursuing returns further up the risk curve.
The Impact Investments Trusts provide a platform for investors to make a positive difference in the community.
■ The Loan Originator (either external broker, or the Investment and Facility Manager) is r esponsible for sourcing the lending opportunity.
■ The Trustee is responsible for provision of finance, protecting interests of fund investors, and approval of loan applications.
■ The Investment and Facility Manager is responsible for managing and assessing loans on behalf of the Trustee.
■ The Underwriter underwrites part or full loan, subject to satisfactory due diligence.
■ The Investment Review Committee is an advisor to the Trustee in relation to loans.
The Fund is a ‘pure play’ private debt strategy with no subordinate debt or leverage. PrivateInvest Credit Pty Limited offers short-term loans secured by first mortgages. Uniquely, the Fund is independently audited despite being a wholesale fund, ensuring strict compliance. The First Mortgage Income Fund targets diverse private debt loans in commercial property development, while Select Mortgage Trusts and Capital Trusts provide direct and higher-risk investment opportunities. Our Impact Investments Trusts enable investors to positively impact the community.”
Mark Roberts - PrivateInvest Managing Director
PrivateInvest Investment Offers
First Mortgage Income Fund Select Mortgage Trusts
Target Returns 8.25% to 9.25% per annum, post fees and expenses.
Monthly interest returns paid into your bank account
This Fund is a pooled, open-ended, unregistered Unit Trust for wholesale and sophisticated investors. Distributions are paid monthly.
The objective of the Fund is to provide wholesale and sophisticated investors with a professionally managed exposure to a nationally diversified portfolio of commercial finance secured by registered first mortgages over real estate.
The Fund has always met its target returns since inception over six years ago with a strong focus on capital preservation and liquidity.
This Fund is “pure play” meaning there is no subordinated debt in the Fund, or debt leverage to bolster the investment returns.
There have been no impairments, or loss of capital in the Fund.
Target Returns 7.50% to 11.00% per annum, post fees and expenses.
The choice on selecting and investing in individual loans
The Trusts are mortgage trusts, structured as an unregistered Unit Trust, for wholesale and sophisticated investors.
A mortgage trust allows investors to select the loan or loans they wish to invest in, secured by registered first mortgages over real estate.
Investors can purchase units in the trust alongside others that are syndicated to the specific loan they select. This approach enables investors to determine their level of participation and choose which loans to invest in.
Other lenders can also syndicate in the loan under bi-lateral facility agreements with PrivateInvest.
PrivateInvest
+ Capital Trusts
Target Returns 15.00% to 21% per annum, post fees and expenses.
For investors that understand the correlation of higher returns against higher risks
PrivateInvest First Mortgage Income Fund/Trusts do not offer second mortgage or preferential equity. The PrivateInvest + Capital Trusts fills this void, providing qualified borrowers financial services across the capital stack.
Property is a capital-intensive industry and many large listed and unlisted development entities use different forms of project finance as it generally cheaper than common equity.
Our PrivateInvest Capital Partnership Platform provides pre-qualified developers access to trusted recurrent capital in order to scale their company without diluting shareholder equity.
PrivateInvest ESG/Impact Trusts
Target Returns Case by Case
For impact investors seeking to make a difference in the community
ESG (Environmental, Social, and Governance) or impact investments are increasingly popular due to their multifaceted benefits. These investments not only generate financial returns but also align with investors’ values, fostering sustainable practices. They promote responsible corporate behavior, leading to a cleaner environment and ethical governance. Furthermore, ESG/impact investments often demonstrate resilience during market downturns, reducing risk. Ultimately, they contribute to addressing pressing global issues like climate change and social inequality, making them a compelling choice for socially conscious investors.
Leveraging our strong track record in delivering social and affordable housing and our acknowledged commitment to environmental, social, and governance practices, PrivateInvest aims to harness its capacity to create a positive impact on local Australian communities.
PrivateInvest First Mortgage Income Fund
First Mortgage Income Fund
The Fund is a “Pure Play” First Mortgage Income Fund with a high focus on capital preservation and with no subordinated debt to bolster investors returns that brings additional risk to the Fund.
Investment and Facility Management Expertise
The PrivateInvest team has decades of technical management experience in funds management, property development, valuation, property asset management and banking gained from prior work in the public and private financial sectors.
Portfolio Repayment Strategy
Exit strategy and repayment of loans is important to credit analysis. Loans usually have a bridging strategy with refinance by mainstream ADI Banks or sale to market.
Investment Returns
The Fund targets a return between 8.25% and 9.25% per annum, post fees and expenses. May 2024’s distribution was 9.72% post fees and expenses.
Investment Structure
The Fund is a pooled, open-ended, unregistered mortgage Unit Trust for wholesale and sophisticated investors, meaning it is always open for investment.
Management Fees and Trustee Fees
Management fee of 1.95% per annum payable monthly in arrears, calculated on the total Funds Under Management. The Trustee is entitled to an annual fee of 0.25% of the drawn loan balance of the Fund, payable monthly in arrears, subject to a minimum payment of $6,000.
Yield Quality and Stability
First mortgage registered security aligned with a rigorous credit approval process and properly priced lending interest rates that support stable investment distributions.
Liquidity
Investors can redeem their investment in part or in full whenever one of the Fund’s underlying loans matures or by new investor subscriptions. Loans are constantly maturing and new capital inflow provides excellent liquidity. There is no lock-up period and no entry and exit fees.
Governance and Compliance
For our wholesale fund, we apply a retail fund manager mindset. The pooled fund, though exempt from audits like retail funds, undergoes voluntary audits for enhanced governance. Our Trustee Board, with NonExecutive Directors, oversees our adept management team, supplemented by the Investment Review Committee, all supported by institutional-grade investor reporting
Minimum Investment
Minimum application $100,000, and thereafter in $10,000 multiples. This can be altered at the Trustee discretion.
Loan Origination
PrivateInvest has an extensive database of finance brokers and industry professionals providing the PrivateInvest loan origination team a solid weekly national supply of new loans allowing the team to “handpick” the right loans.
Fund Performance
The Fund has met its target returns since inception August 2018 with a strong focus on capital preservation and liquidity. Whilst historical performance is not necessarily an indication of future performance, the investment return is expected to increase with the rise in wholesale interest rates in Australia.
Stable Regular Income
Distributions are paid monthly or can be reinvested into the Fund.
Low Risk on Curve
Average weighted sub 65% LVR on registered first mortgages, supported by Directors and Personal guarantees, which further increases the security pool and hedges against default recovery and downside risk in declining markets.
Loan Size and Term
These loans are generally in the $3 million to $25 million loan size range, with an average loan size now increasing to between $8 million and $12 million (variation with market demand). This range has the highest market demand and is considered the “unloved sector” as the amount is too small for bigger Funds. Average loan facility is generally 12 months which avoids the risk of loans with longer tenure trading through different property cycles.
“
The First Mortgage Income Fund offers wholesale and sophisticated investors a professionally managed, nationally diversified portfolio of commercial credit secured by registered first mortgages. This pooled, open-ended Unit Trust provides monthly investor distributions directly to your bank account.”
Mark
Roberts-PrivateInvest ManagingDirector-OnPrivateInvest’sFirstMortgageIncomeFund
Investment Mandate
PrivateInvest to originate registered mortgage loans for other similar investors and then syndicate the loan with PrivateInvest.
An Investment Mandate is an agreement between PrivateInvest and your nominated entity to originate the loan types you seek to invest in. PrivateInvest has deep relationships with larger broking houses and an extensive national data base of over 10,000 commercial Brokers. We can find the right loan for you.
A n Investment Mandate Agreement is usually structured where you would appoint PrivateInvest on the following basis:
1. Ap pointing PrivateInvest to source and present debt-based investment opportunities in Australia which fall within set investment criteria (agreed between the parties prior, which may include max/min investment amounts, returns, sectors);
2. No n-exclusive appointment;
3. Investor to commit a set amount of funds for potential investments, however participation in an investment is subject to the investor approving the terms presented for a specific investment;
4. Pr ivateInvest to source and present investment opportunities which satisfy the agreed investment criteria; and
5. Investor would have a pre-agreed time frame within which to accept an investment proposal.
Co-Invest Opportunities with PrivateInvest
Invest with PrivateInvest on a pari passu basis in single first mortgage loans you originate and we provide the additional capital.
With both parties having “skin in the game”, both parties share the risk and return of the co-investment opportunity. Better outcomes can be achieved when aligned resources work together.
There are contractual ways this can be structured between the entities. A single purpose special Unit Trust is established to be the Lender. The options for the legal structure are as follows;
Participation Agreement
This is involves:
a) A bilateral facility arrangement between the Borrower and PrivateInvest (PrivateInvest will be the security holder and lender on record (meaning registered on the title).
b) As an Investor you participate in the loan by way of a sub-participation arrangement. The sub-participation would be documented by way of a participation deed, which would give you, the Investor, the right to participate in the loan, though not as a lender on record. In essence it gives you, the Investor, the right to share in the interest under repayment of (on a pro-rata basis) the loan. That relationship however is strictly between you the Investor and PrivateInvest
Club v Syndicated
The key differences between a club loan and a syndicated loan are:
1. A cl ub loan usually has fewer lenders (between two and five) whilst a syndicate can have 1 to 20.
2. A sy ndicated loan usually has a lead arranger or agent that coordinates the syndication process, structures the deal and takes on additional responsibilities such as:
a) Notifying the Lenders:
b) In relation to any Defaults;
c) Of non-payments of any principal, interest, commitment fee or other fee payable to a Lender; and
d) Where there are requests by the borrower regarding extensions or pre-payments
e) Distribution of payments under the Finance Documents.
3. Un der a traditional club arrangement there is no lead arranger or agent. The lenders usually share common facility agreement definitions, warranties, covenants, events of default, review events and boilerplate clauses. These are commonly documented in a common terms deed. Each lender may then have a separate bilateral facility setting out terms negotiated directly between the borrower and the specific lender. In a syndicated facility, lenders lend a proportion of the total amount borrowed by separate loans under a single facility agreement. Aside from the amount each lender makes available, the terms of the facility are common to each lender.
4. Un der both a club and a syndicated facility, a security trustee can be appointed to deal with, and hold, the security. This can be a professional security trustee such as Global Loan Agency Services (GLAS) or a PrivateInvest entity with an AFSL that allows for it.
“
A Participation Agreement involves a bilateral facility arrangement between the Borrower and PrivateInvest, where PrivateInvest is the security holder and lender on record. Investors participate in the loan via a sub-participation arrangement, giving them the right to share in the interest repayment on a pro-rata basis, though not as a lender on record. This relationship is strictly between the Investor and PrivateInvest.”
Naomi
Roberts - Director - Legal - Investor Relations - Trustee Board Member
Managing Loan Books
High-Level Key Considerations for Loans | Loan Origination and Distribution Channels | Loan and Credit Process | Borrowers Rate
Card - First Mortgage Loans | Loan Origination Process | FinTech: Integrated Systems | Third-Party Service Providers | Cyber Security Implementation | Governance | Company Corporate Structure
High-Level Key Considerations for Loans
1. Location of Security Properties
a) High preference to CBD locations.
b) For regional and rural loans (outside of regional centres) we would require a rationale (e.g. demographic study, pre-sales) to justify the credit worthiness.
2. Liquidity/Capital Commitment from the Borrower
a) A preference to loans that have the Borrower’s cash equity invested in the project and are not reliant on valuation uplift.
b) An overview of the status of their other projects and loan facilities would be required.
3. Capability Of The Borrower
a) Has the Borrower completed similar projects?
b) Are all the necessary approvals and governance in place?
c) Strength of their balance sheet?
d) Capital plan for their exit strategy?
e) And other areas that are covered in this document credit process.
4. Capability of Third Parties
a) Financials and capability statements of builders & tenants, when applicable.
b) What is the strength of the consultant team and their advisers?
c) Valuation firms that are acceptable to PrivateInvest.
5. Facility Agreements
a) Using top tier legal firms that have banking and finance divisions.
b) Documentation that addresses any risk mitigants (e.g. conditions precedent and subsequent, step-in deeds with builders, intercreditor deeds, corporate and personal guarantees).
6. Exit Strategy
Site finance: Capacity of the Borrower to move the project into construction and ability to achieve pre-sales or a “bankable” tenant for commercial/industrial assets.
Construction finance: Level of pre-sales to demonstrate market acceptance of the product or a suitable tenant that has comparable experience and financials to support them being an operator.
Loan and Credit Process
Stage 1:
Enquiry and review of information
Stage 4: Detailed due diligence
Stage 5: Present to wider management team and IRC for preliminary endorsement and capital treasury assessment
Loan Enquiry
Reject� (Record enquiry for Marketing ROE)
Stage 3: Request further info
(Record loan enquiry)
Review information (Provide email summary to Credit Origination Team)
Stage 2:
Early stage assessment of quality (Preliminary Due Diligence)
Credit Origination Team feedback and initial DD
further information (“RFI”)
Stage 6: Issue Indicative Term Sheet to Borrower/ Sponsor
Stage 7: Stage 8: Stage 9:
Credit Paper Production and obtain all due diligence requirements for presentation to Investment Review Committee (“IRC”)
Trustee Board: If Approved, Final Letter of O�fer to Borrower, subject to satisfaction of CP’s and satisfaction of legal documentation
Investment Review Committee Meeting Commence Legal Documentation and then Financial Close
Borrowers Rate Card - First Mortgage Loans
clearly evidenced. Pre-sales Debt Cover N/A
by Case basis and must demonstrate market sales evidence
by Case basis and must demonstrate market sales evidence.
Ratio (“LVR”)
Rate Type
cap at 65% LVR and up to 70% if Loan Covenants are very strong. General cap at 65% LVR and Total Development Cost and Net Realisable assessed case by case basis.
or Serviced or Combination of Both. Generally Fully Capitalised with
Loan Origination Process
PrivateInvest is currently transitioning to a new Web Portal Loan Management system to be live by the 1st July 2024.
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ARMnet Loan Management Web Portal
PrivateInvest has recognised the necessity of establishing an online presence for the Loan Management of the business to manage a Loan through the life cycle. This system was selected after an exhaustive process of reviewing replacement systems.
FinTech: Integrated Systems
PrivateInvest’s FinTech’s evolution began with early phase Cloud-based solutions and we have further expanded our capabilities, encompassing a CRM, Salesforce, Ansarada Project Management, and Axcess Loan Management system. This enhanced functionality has set our platforms for the integration of AI, unlocking opportunities for data analytics and automation in powerful new ways.
Salesforce is our preferred customer relation management (CRM) platform. It is a cloud-based system that centrally manages our customer data, sales processes, and integrates with other business tools.
■ Unqualified brokers (finance/investment)
■ Brokers (finance/investment) with appropriate opportunities Leads
Axcess is our digital platform provider that flows the automation and streamlining the entire loan life cycle including loan servicing, reporting, loan management and syndication as part of the business lifecycle. Account
■ Individuals/business ready to invest /borrow
■ All Workflow Driven
■ Un qualified investor Opportunity
■ Fund/loan application
■ Closed won (fund invested/loan settled)
■ Closed lost (fund exit/loan lost) Reports
■ Lead engagement ■ Sa les pipeline
Bro ker activities
■ Full Arrears Management
■ Document Management Underwriting
■ Accounting and General Ledger
■ Ex tensible API (Application Programming Interface)
■ We b Service End points to and from other services
■ Reporting + Loan Statements
■ Privacy Systems Integration
■ Da shboard Reporting Servicing
■ Automated Rules Engine
Third-Party Service Providers
These providers bring specialised expertise, resources, and capabilities that enhance efficiency, reduce costs, and allow PrivateInvest to focus on its core business functions.
Automic provides external funds registry services which includes online applications, KYC/ AML verifications, funds management services and reporting.
Fund Management Dashboard
Fund Management dashboard includes consolidated holder reporting across multiple entities, holding balances, transactions, distribution history and full registry reporting. Assists in meeting all regulatory requirements by generating reports - quarterly TFN, Annual Investment Income Return (AIIR), share and unit transfer and FATCA/CRS.
As part of the investor process, Automic completes AML/KYC verification and FATCA/CRS declarations of all investors and associated entities.
Online Application Process
Online application process for investors to reduce paperwork and time.
Investors dashboard with real time access to holding statements, tax statements and correspondence.
Multi-factor authentication
Multi-factor authentication is mandatory for all users as security protocol.
Automic follows strict adherence to ISO 27001 and ISO 9001 quality standards, with strong cryptographic standards across all customer data, encrypted with TLS in transit and AES-256 at rest. All systems are thoroughly tested by an external independent third-party security vendor.
First AML provides KYC/AML verifications of all borrowers in the Fund.
Electronic Identification and Verification
First AML’s user-friendly Electronic Identification and Verification is via a secure web form to verify borrower identification. The platform automatically conducts checks on politically exposed persons, sanctions, and adverse media.
Multi-Country Privacy Legislation
First AML complies with relevant privacy legislation within the United Kingdom, New Zealand, Australian, and European countries. All data transmitted and stored via the First AML platform is encrypted both in transit and at rest using the industry standard AES-256 encryption algorithm to encrypt data.
As part of the credit review process, all borrowers must complete a privacy form to authorise a credit score check for both themselves and their guarantor.
Multi-Country Privacy Legislation
■ Quick summary of a borrower’s credit history, financial behaviour, and gauge likelihood of timely repayment.
■ Mitigate risk - identify potential red flags, such as past defaults or late payments, which might indicate a higher risk of non-payment.
■ Compliance with financial regulations and lending guidelines.
Cyber Security Implementation
With the support of our IT partner, iQuest, PrivateInvest recently reinforced our security posture, in line with the Essential Eights framework (devised by the Australian Cyber Security Centre, part of the Australian Signals Directive).
Managed Security Operating Centre (SOC)
Provides continuous cyber threat monitoring, real-time threat detection, swift incident response.
SendMARC
– Email Protection
Monitors emails sent from various privateinvest.com.au locations; creates and maintains approved list of senders.
Azure AD, Defender & InTune Deployment
Centrally managed PI devices to effectively implement security functions, IT policies.
Cyber Security Awareness (KnowBe4)
Enhance cyber security awareness, fostering security-conscious culture via phishing simulations, questionnaires.
Governance
PrivateInvest has a detailed Compliance Manual addressing the following work plans:
■ General Compliance arrangements
■ Outsourcing Statement
■ Conflicts of Interest Policy and Procedures and Related Party Disclosure
■ Organisational Expertise − Processes
■ Development Program for Responsible Officers
■ Industry Standards Compliance
■ Monitoring and Supervision of Representatives Plan
■ St aff Functions and Responsibilities
■ Control of Financial Transactions
■ Financial Statements and Financial Resources
■ Audit
■ Process for Reporting on Financial Obligations
■ Money Handling
■ Anti-Money Laundering and Suspicious Transactions
■ Non-Financial Resources
■ Human Resources Statement
■ IT Capacity Statement, Business Continuity and Disaster Recovery
■ Risk Management System
■ Risk Management System Statement
■ Ex ternal Service Provider Criteria
■ Electronic Communication Policy
■ IT Strategic Plan
■ IT Disaster Recovery Plan
■ Privacy Policy Compliance Structure of the Company Board of Directors Compliance Committee Compliance Consultant Staff with AFSL Related Responsibilities Create Documentary Records and Provide Signoffs to Compliance Officer Conduct Regular Reviews of Registers and Records
Leon Boyatzis Compliance Officer (CO)
Governance Cont.
Investment Review Committee
(‘IRC’)
The IRC is tasked by the Trustee to ensure any proposed loans meet the investment criteria, objectives and mandate of the Fund.
The IRC is governed by its Charter, and its members represent and serve the interests of unitholders in the Fund. They oversee and appraise loan recommendations by the Manager, identify and manage conflicts of interest and perform its functions as per the IRC Charter.
The IRC critically evaluates each loan via a deep dive into each credit paper. Detailed loan analysis occurs covering characteristics and background, property description and development management, security, valuation, borrower and guarantees, key risks and mitigation, and any relevant conditions precedent that apply for final loan approval.
Compliance Committee
Compliance Committee meets quarterly and is comprised of the following personnel:
■ Roger Campbell – Chair and Compliance – External Compliance Consultant
■ Le on Boyatzis (Compliance Officer)
■ Naomi Roberts
Company Corporate Structure
PrivateInvest Pty Limited (PI) Parent Entity
ACN 626 703 026
PrivateInvest 87% shares Roberts Family – 13% shares staff
PrivateInvest Credit Pty Limited (PIFM) Investment and Facility Manager
ACN 625 468 215
PrivateInvest 100% Subsidiary Entity
Directors:
Roberts (Managing Director)
Roberts (Company Secretary)
PrivateInvest Capital Securities Limited (PICSL) (Trustee Company)
ACN 611 892 249
AFSL Licence No 491287
PrivateInvest 100% Subsidiary Entity
Directors:
Mark Roberts (Managing Director)
Leon Boyatzis (Head of Funds Management)
Directors:
Greg Peel (Non-Executive Director / Chairman)
Roberts (Company Secretary)
PrivateInvest Select Mortgage Trusts (PIST) (Master Constitution)
PrivateInvest First Mortgage Income Fund (PIFF)
ABN 40 229 793 954
Roberts (RM/ Company Secretary)
Roberts (Managing Director)
(RM)
PrivateInvest Capital Trusts (PICT) (Master Constitution)
Naomi
Mark
Mark
Naomi
Naomi
Leon Boyatzis
Company Corporate Structure cont.
Mark Roberts
Naomi Roberts
Leon Boyatzis
Sarah de Rozario Director
Stewart
Andrew Groves Manager
Brett Roberts Graphic Design
William Colebrook Adviser
Wei Credit Analyst
Contact
The registered office of the company is:
Perth:
561 Stirling Highway, Cottesloe, Western Australia 6011
Postal:
PO Box 477 Cottesloe, Western Australia 6911
Phone:
1300 2 INVEST (1300 2 468 378)
1300 4 FUNDING (1300 4 386 346)
Email: corporate@privateinvest.com.au
Web: www.privateinvest.com.au
The principal places of business of the company are:
Perth:
561 Stirling Highway, Cottesloe, Western Australia 6011
Sydney:
Level 9, 60 Castlereagh Street, Sydney, NSW 2000
Postal:
PO Box 477 Cottesloe, Western Australia 6911
Phone:
1300 2 INVEST (1300 2 468 378)
1300 4 FUNDING (1300 4 386 346)
Email: corporate@privateinvest.com.au
Accounting and Taxation Accountants
Pitcher Partners
Level 11, 12-14 The Esplanade Perth, Western Australia 6000
Registry Services
Automic Group Pty Ltd
Level 5, 126 Philip Street
Sydney, New South Wales 2000 1300 288 664
Banking and Finance
Lavan
Level 20, 1 William Street
Perth, Western Australia 6000
+61 8 9288 6000
Banking and Finance / Funds Management
HWL Ebsworth Lawyers
Level 14, Australia Square 264-278 George Street
Sydney, New South Wales 2000
+61 2 9334 8555
Disclaimer
This presentation has been prepared by PrivateInvest Credit Pty Limited (“PrivateInvest”). The information contained herein is based on sources we believe to be reliable but is not guaranteed as to its accuracy, completeness, or timeliness. It is provided on an “as is” basis and is subject to change without notice.
This Presentation is provided to each recipient on the condition that it is strictly confidential and is solely for the use of the recipient. Redistribution or reproduction of this presentation without the prior written consent of PrivateInvest is strictly prohibited. By accepting this Presentation, you agree to be bound by the foregoing limitations and to keep the information contained herein confidential.
This presentation does not constitute an offer, invitation, or recommendation to buy or sell any securities or other financial instruments, nor does it constitute financial, investment, legal, tax, or other advice. Recipients should not act or rely on any material contained in this presentation without seeking their own professional advice.
To the maximum extent permitted by law, neither PrivateInvest, nor any of their associates, related parties, directors, officers, employees, advisors (including financial, accounting and legal advisors) do not accept any liability whatsoever for any direct or indirect loss or damage arising from any use of this Presentation or its contents.
This Presentation may contain certain forecasts and forward-looking statements. These have been prepared by PrivateInvest and represent PrivateInvest’s best estimates based on present circumstances. The forecasts and forward-looking statements involve subjective judgements and assumptions as to future events, which may or may not be correct. PrivateInvest cannot, and does not, guarantee the achievement of these forecasts and forward-looking statements.