DECEMBER 2023
Capability Statement
The Australian Investment Fund Manager + Private Capital to the Property Sector privateinvest.com.au
PrivateInvest Capability Statement – December 2023
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“ We’re large enough to offer you the expertise, industry leadership, and governance expected of major financial institutions, but we are small enough to ensure both borrowers and investors have direct access to all team members when required.” MARK ROBERTS Group Executive Chairman
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PrivateInvest Capability Statement – December 2023
Welcome to PrivateInvest PrivateInvest was established over a decade ago to provide investment opportunities to wholesale and sophisticated investors through its lending to qualified borrowers in the Australian commercial property sector. At PrivateInvest, we 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 you the expertise, industry leadership, and governance expected of major financial institutions, but are small enough to ensure both borrowers and investors have direct access to all team members when required. Our specialist finance team have extensive experience in structuring commercial property finance. Our investments provide capital for tailored property financing solutions to qualified borrowers in the middle development market segment and is supported by our professional services. With PrivateInvest, it’s personal. We have an exclusive focus on real estate and commercial property development opportunities, offering a range of investment funds that provide market exposure to a professionally managed and nationally diversified portfolio of commercial property finance. From a borrower’s perspective, our property specialisation and tailored approach to designing and delivering financing solutions means developers, investors and other stakeholders have access to value-adding,
structured finance from a team who genuinely understands property and the issues that drive project success. To date, our funds have returned above-market risk adjusted rates of return and we have seen real loan book growth. This reflects a number of factors, not least of which is the skill of our Trustee Board, our technical management team and our Investment Review Committee who provide an exceptional competitive advantage in terms of loan and opportunity assessment, financial product design, and governance processes. As our Funds grow in scale, the strategic objective for PrivateInvest is to maintain our BIG ENOUGH. SMALL ENOUGH. market position. PrivateInvest does not have to be the “biggest in town”, just strive to be the best in class and sector. Our objective is to be an optimum business model. The definition of “optimum” is: best, most likely to bring success or advantage. Our strategic objective benefits all stakeholders by having the right size resources to maintain being a transparent, trustworthy, forward-thinking and valuesbased investment business. Yours faithfully, Mark Roberts Group Executive Chairman PrivateInvest Capability Statement – December 2023
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PrivateInvest – Investment Company The loan portfolio platform has been grown in a measured way with investment returns forecasted to increase with the rise in wholesale interest rates. The loan portfolio spreads risk as it is across different Australian States, diversified by asset type, class, borrower local postcode locations.
Big enough. Small enough. PrivateInvest is an Investment Fund Manager + Private Capital Partner to the Australian commercial property sector. Unlike traditional banks, we only finance projects in the property industry and with a broader range of structured property finance. We combine the best of large and small-sized financial service providers to offer investors and borrowers an investment offering similar to larger institutional financial houses, but small enough that we can keep an active eagle eye over all of our property transactions.
Investment Fund Manager + Private Capital Partner to the Property Sector At PrivateInvest we offer wholesale and sophisticated investors the choice of four Fund/Trusts which provide investors a range of income returns, income distribution frequency and liquidity. Our investors have received above industry average risk adjusted returns, with no loss of capital or impairment in our history. We have established repeat business with our borrowers which are offered a range of structured finance solutions to meet the requirements of their project financing needs.
National Footprint and Diversification We are big enough to have an Australian national portfolio of investment and finance providing investors and borrowers diversification by asset type, class, market location and entry timing but small enough that we that have a very “hands on” approach to the business. PrivateInvest lends against property residual stock, development and construction, and site finance.
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PrivateInvest Capability Statement – December 2023
Time is Money We are big enough to have capital underwriting which benefits our investors by lowering the risk when a Fund/Trust has excess cash reserves which dilute investment returns. Capital underwriting allows borrowers the confidence to sign finance offers that are not subject to capital raising. We are still small enough that borrowers can talk direct to the credit decision makers which improves approval times.
Highly Experienced Team We know property. Our specialist finance team has decades of property experience in structuring equity and debt for property transactions at leading investment firms and institutions. The combined experience extends across banking, direct development, construction, valuation and credit analysis. We are exceptionally placed to identify, assess, and work with qualified borrowers seeking finance for a range of development property projects across Australia.
Governance and Reporting Our Trustee Board has Non-Executive Directors overseeing our highly skilled management team with additional oversight from our Investment Review Committee. PrivateInvest’s flexible risk assessment model is bolstered by our robust internal and external controls that oversee all aspects of the business including external independence, risk analysis and mitigation, regulatory compliance and backed up by institutional grade investor reporting. PrivateInvest Capability Statement – December 2023
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Our Sector and Our Business With over five years track record, the PrivateInvest Fund and Trusts are now also capitalising on the higher inflation environment and rising interest rates equating to increasing returns to our PrivateInvest investors.
About PrivateInvest ■ PrivateInvest is an Investment Fund Manager + Private Capital Partner in the Australian commercial property sector. ■ Over five years of direct funds management track record since inception of our first Fund. ■ Loans across the main Fund and various single Trusts as at 30th September 2023 is $141.1 million. Who ■ As at 30th September 2023 the forward book of first mortgage loans under due diligence for finance is $34.75 in new loans. We Are ■ Over the past five years, the combined commercial loan portfolio has originated, processed, and settled a cumulative count of 32 first and second mortgage loans, collectively amounting to a facility limit of $212.2m (as at FY23).
Secure Track Record ■ No impairments or capital losses since inception with a high focus on capital preservation. ■ Returning above industry average risk-weighted returns. ■ Established national database of commercial brokers (for new loans).
Established Fund Manager
■ More than 50% of our investor base have increased their investment in PrivateInvest Funds since their first investment, evidencing their conviction in the Funds’ performance and track record. ■ PrivateInvest investor base has more than 100 investors made up of sophisticated and professional investors including high net, ultra-high net and Family Offices. PrivateInvest is now expanding its investor base to select investors while remaining committed to our existing investors.
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PrivateInvest Capability Statement – December 2023
Tailwind Market Growth ■ S&P Global estimates that the global private debt market has grown tenfold in the past decade, however, remains relatively immature in Australia.
Growing Market Segment in Australia
■ As ADI Banks are subject to more stringent lending and capital requirements, their market share of the Australian CRE debt market is falling. ■ Non-Bank Lending in Australia 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).
Activating the Next Stage of Growth
Investment Strategy
■ Af ter 5 years of methodically building the business investment model, we are now ready to grow. Target forecast Loans Under Management (“LUM”) at FY YR End June 2026 is $630 million with target Funds Under Management (“FUM”) $450 million at FY YR end 2026 writing average 34 loans per annum over 3 years at average Loan size of $12 million. This is based of f a strong platform established since inception.
PrivateInvest Capability Statement – December 2023
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Non-Bank Lending – Commercial Real Estate Non-Bank Lenders will be required to fund more than $50 billion in the Australian CRE debt market from 2021-2024.
Around the World: ■ S&P Global estimates that the global private debt market has grown tenfold in the past decade (2011-2021).
A demonstrated global shif t in the deployment of debt via Non-Bank Lenders has seen investors realign their portfolio strategy through:
■ In 2008, in the US and Europe, Banks held a 55% share of first mortgage lending (Non-Bank Lending 45%). By 2019, this composition had inverted to 21% and 79%.
■ An emergence of demand towards private debt funds and away from volatile equities markets, meaning lower volatility and stable, riskadjusted returns.
■ 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”.
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PrivateInvest Capability Statement – December 2023
■ Overseas investors, particularly Asian domiciled, are taking advantage of Australia’s growing Non-Bank Lending sector. For example, in 2021, Hong Kong investment giant Sun Hung Kai & Co created a $400 million real estate debt fund with a large focus on the Australian market.
Non-Bank Lending Sector Growth In Australia 350000
AUD (000)
300000 250000 200000 150000 100000
Jan-16
Jan-17
Jan-18
Jan-19
Jan-20
Jan-21
Source: Ibis World (2022)
Jan-22
Historical
Jan-23
Jan-24
Jan-25
Jan-26
Jan-27
Forecast
In the Australian Market ■ Traditionally in Australia, NonBank 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: + Qualitas $700m Australian CRE mandate from ADIA (2022). + MaxCap ~$1b Australian CRE mandate from Apollo Global Management (2022). ■ 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).
PrivateInvest Capability Statement – December 2023
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Target Returns
Target Returns
8.25% to 9.25% per annum, post fees and expenses.
7.50% to 11.00% per annum, post fees and expenses.
PrivateInvest First Mortgage Income Fund
PrivateInvest Select Mortgage Trusts
MONTHLY INTEREST RETURNS PAID INTO YOUR BANK ACCOUNT
YOUR CHOICE ON SELECTING AND INVESTING INTO INDIVIDUAL LOANS
This Fund is a pooled, open-ended, unregistered Unit Trust for wholesale and sophisticated investors. Distributions are paid monthly.
The Trusts are mortgage trusts, structured as an unregistered Unit Trust, for wholesale and sophisticated investors.
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 five 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.
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PrivateInvest Capability Statement – December 2023
A mortgage trust allows you to select the loan, or loans, you wish to invest in secured by registered first mortgages over real estate. You can invest in Units in the Trust alongside others that are syndicated to the specific Loan you select. In this way, you can ef fectively select the level of participation you have, and which of the loans you invest in. Other lenders can also syndicate in the loan under bi-lateral facility agreements with PrivateInvest.
Target Returns
Target Returns
15.00% to 21%per annum, post fees and expenses.
Case by Case - Minimum 25% per annum
PrivateInvest + Capital Trusts
PrivateInvest Special Situations Trust
FOR INVESTORS THAT UNDERSTAND THE CORRELATION OF HIGHER RETURNS AGAINST HIGHER RISKS
FOR INVESTORS THAT UNDERSTAND INVESTMENT AND RISK STRATEGY THAT ARISES FROM SPECIAL SITUATION INVESTMENTS.
PrivateInvest First Mortgage Income Fund/ Trusts do not of fer 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 dif ferent 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.
This event driven investment strategy, also called special situations, refers to opportunities that arise from material changes in market conditions, poor Borrower / Sponsors that experience an inability to refinance, projects that go into receivership and other lenders that approach PrivateInvest and wish to sell their existing loans at a discount to market. The PrivateInvest team has deep prior experience from working for institutional firms dealing with special situations that require capital solutions spanning the spectrum of debt and equity. These investment opportunities arise from time to time and investment opportunities are of fered to investors that have registered prior to receive the Investment Information Memorandum. For more information on how to register contact Mark Roberts direct: Phone: + 61 419 74 55 44 Email: mark.roberts@privateinvest.com.au
PrivateInvest First Mortgage Income Fund 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. 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. STABLE REGULAR INCOME Distributions are paid monthly or can be reinvested into the Fund. INVESTMENT RETURNS The Fund targets a return between 8.25% and 9.25% per annum, post fees and expenses. FUND PERFORMANCE The Fund has met its target returns since inception over five years ago 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. 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. LOAN SIZE AND TERM These loans are generally in the $3 million to $25 million loan size range, with an average loan size of $6 million to $8 million which 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 dif ferent property cycles. 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. 12
PrivateInvest Capability Statement – December 2023
LOW ON RISK CURVE Average weighted sub 65% LVR on registered first mortgages, supported by Directors or personal guarantees, which further increases the security pool and hedges against default recovery and downside risk in declining markets. PORTFOLIO REPAYMENT STRATEGY Targeting commercial and industrial loans with less weighting on residential loans. Loans usually have a bridging strategy with refinance by mainstream ADI Banks. Another loan exit strategy is sale into Real Estate Investment Trusts. 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. 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. 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. GOVERNANCE AND COMPLIANCE For a wholesale fund, we adopt a retail fund manager mindset. As an example, the pooled fund is a wholesale fund that does not require to be audited, unlike retail funds, but we choose to have the fund audited as a further level of quality governance. Our Trustee Board has Non-Executive Directors overseeing our highly skilled management team with additional oversight from our Investment Review Committee. This is all backed up by institutional grade investor reporting. MINIMUM INVESTMENT Minimum application $100,000, and thereaf ter in $10,000 multiples. This can be altered at the Trustee discretion. PrivateInvest Capability Statement – December 2023
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Your Choice on Selecting and Investing Into Individual Loans.
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PrivateInvest Capability Statement – December 2023
PrivateInvest Select Mortgage Trusts To invest in individual loans rather than a pooled fund, you have the option to invest in units in the Trust, alongside others, that are syndicated to the specific loan you select. Choosing to invest in a specific loan allows you to effectively select the level of participation you have and which loans you with to invest in. For substantial investors like Family Offices or Private Banks seeking exclusive investment opportunities, we can arrange a Mandate Agreement to facilitate the sourcing of loans. ■ Preferred target return: Linked to the specific loans you invest in.
■ Interest payment: (Paid monthly, prepaid or capitalised)
■ Asset Class: (Commercial, Industrial, Office, Retail, Residential, Land – Residential, Land – Commercial / Industrial)
■ Construction exposure: (Yes / No)
■ Size of Investment: ($1-$5m, $5-$10m, $10-25m, $25m+) ■ Capital Availability: (Immediate, 1-3 months, 6 -12 months) ■ Location: (NSW, QLD, VIC, WA, NT, SA, TAS)
■ Investor: (Company / Individual / Trust / Partnership) ■ Resident of Australia for tax purposes: (Yes / No) ■ Withholding tax applicable: (Yes / No)
■ Investment Term: (Less then 1 year, 1-2 years, greater than 2 years)
PrivateInvest Capability Statement – December 2023
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Your Investment, Your Allocation, Your Choice ■ Allocation between the “pure play” First Mortgage Income Fund and Second Mortgage Trusts allows investors the flexibility to increase returns and balance risk appetite. ■ PrivateInvest’s point of dif ference is that it does not have subordinated debt in the PrivateInvest First Mortgage Income Fund (Pooled Fund) to increase investment returns. Subordinated debt in the First Mortgage Income Fund increases the underlying risk to investors and ultimately, the investor loses control of the allocation between first and second mortgage debt. ■ PrivateInvest provides investors the options to invest in second mortgage products alongside the PrivateInvest First Mortgage Income Fund by allocation between the two investment products.
Your Investment, Your Allocation, Your Choice. % ALLOCATION IN FIRST MORTGAGE VERSUS SECOND MORTGAGE LOAN RETURN 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
18.00% 17.05%
16.10%
15.15%
14.20%
13.25%
12.30%
11.35%
10.40%
9.45%
8.50%
First Mortgage Assumed Target Returns: 8.50% p.a. post fees and expenses. Second Mortgage Assumed Target Returns: 18.00% p.a. post fees and expenses. An investor placing an allocation of 90% in the First Mortgage Income Fund and 10% in the Second Mortgage Trust would receive an aggregate return of 9.45% per annum, post fees and expenses. It is not unusual to see first mortgage funds by PrivateInvest competitors have subordinated debt in their Fund on a 75% first / 25% second basis but still produce similar returns to the current PrivateInvest First Mortgage Income Fund which is a “pure play” first mortgage only.
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PrivateInvest Capability Statement – December 2023
PrivateInvest + Capital Trusts PrivateInvest offers second mortgage or preferential equity. The PrivateInvest First Mortgage Fund/Trusts do not of fer second mortgage or preferential equity. In response to this, PrivateInvest + Capital Trusts fills this void to of fer a broader spectrum of financial solutions to eligible borrowers across various tiers of capital investment. PrivateInvest + Capital Trusts present a unique opportunity for investors who are inclined to venture further along the risk curve. By providing registered second mortgage and preferential equity placements, PrivateInvest + Capital Trusts provides investors the opportunity for higher returns. These loans are of ten structured to accommodate the participation of multiple investors, which can be a mutually beneficial arrangement for those seeking to diversify their investment portfolio. This collaborative approach caters to the diverse needs of both borrowers and investors.
PRIORIT Y
Equity
5% -10% of Capital No Security All remaining Profits
Preferred Equity
5% -25% of Capital No Security Fixed Return/ Share of Profits
Second Mortgage Loan
10%-20% of Capital Second Mortgage over Property Higher Fixed Return
First Mortgage Loan
50%-65% of Capital First Mortgage over Property Lower Fixed Return
PrivateInvest Capability Statement – December 2023
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In the News – PrivateInvest Insights PrivateInvest has taken a position to adopt educational and research activities to pursue and promote investment topics that have interest to our investors and provides quality information on financial markets and related topics.
where proceeds of crime weave their way to the sunny shores of Australia.
The first PrivateInvest Insights event interviewed Nathan Lynch. Nathan is described as a financial crime expert, international speaker and author of the “Lucky Laundry: How the Aussie economy got hooked on the world’s dirtiest cash”, published by Harper Collins. Nathan specialises in the fields of Financial Crime Intelligence, Anti-Money Laundering, Counter-Terrorism Financing and Regulatory Risk. Nathan leads a team of experts who provide breaking news, deep analysis and practical guidance to more than 25,000 subscribers in the global financial services sector. He manages Thomson Reuters’ awardwinning Regulatory Intelligence team across the Asia-Pacific region, tracking in financial services law, AML/CTF and risk management.
Damon Kitney, a distinguished Australian journalist, is widely recognized for his incisive business reporting. With a career spanning decade, he has contributed significantly to prominent publications, of fering in-depth insights into corporate af fairs, finance, and leadership. Damon is the author of the bestselling biography of James Packer. The event was nothing short of extraordinary. With unparalleled expertise, he took attendees on a captivating journey into the realm of business journalism, sharing riveting accounts of his interactions with the country’s foremost business magnates.
The evening was a fascinating insight into investigative journalism as Nathan peeled the layers of complex financial crime schemes and made them accessible to a ‘layman’ audience. He took the audience through ingenious techniques the world’s criminals use to amass, conceal and clean their illicit wealth. He covered the most notorious international wash-houses, 18
PrivateInvest Capability Statement – December 2023
In June 2023, PrivateInvest held its second PrivateInvest Insights event, this time Mark Roberts interviewing Damon Kitney
The evening was a masterclass in insightful storytelling, where Damon’s narratives painted vivid portraits of top-tier wealthiest families in Australia. Through his words, the audience gained unique perspectives into the minds of these business luminaries, making the event an invaluable and unforgettable experience.
PrivateInvest Capability Statement – December 2023
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PrivateInvest Value Promise When PrivateInvest was created over a decade ago, our goal and promise was the same as it is today: to be a transparent, trustworthy, and forward-thinking values-based investment business with a strong culture that is always challenging the status quo, leveraging its best asset, its people, and producing above industry average risk adjusted returns. Over the past decade, PrivateInvest, as a family of fice driven initiative, has assembled a group of highly qualified industry professionals that are aligned in culture and conviction to strive to be the best choice for investors and borrowers. Our specialist investment finance team have decades of property experience in structuring first and second mortgage debt and preferential equity at leading investment firms and institutions. We are exceptionally placed to identify, assess, and work with qualified borrowers seeking finance for a range of development, construction, and other property projects across Australia. Our borrowers have direct access to decision makers and support networks at all stages of their property projects – this sets us apart from larger banks and financial institutions. Our Trustee Board of Directors, technical management team and Investment Review
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PrivateInvest Capability Statement – December 2023
Committee are well placed to identify the right loan opportunities and assess the credit risk profiles – providing oversight of the risk management frameworks and execution strategies. Our strong emphasis on capital preservation has resulted in investors consistently receiving risk-adjusted returns that surpass industry averages. Over our history, we have upheld our track record of no capital losses or impairments. This success is achieved through our diverse range of Funds/Trusts, each of fering various income returns, income distribution frequencies, and liquidity options. Through the experience of our team, its focus on transparency, oversight, collaboration, and governance, PrivateInvest has established an investment fund management company to deliver quality investment returns whilst being a property capital partner to the property sector.
Our Business Model PrivateInvest Capital Partnership. PrivateInvest operates as a nontransactional business. We prioritise recurring revenue and ongoing business relationships. Through our capital partnership platform for selected borrowers, we establish repeat business, becoming their trusted capital partner. This arrangement allows borrowers to concentrate on project delivery while we handle the funding and financial structuring. It also enhances our credit knowledge, further reducing risk, and provides a clear understanding of the future loan pipeline, ensuring continued business. This approach is scalable and benefits all parties involved. The same principle applies to our capital origination, as over 50% of our investors choose to invest with us more than once. We highly value long-term investor commitments. Many fund managers of ten scale their operations and start seeking larger institutional investments, which results in loans growing in size and initial supporters of the business fading away. PrivateInvest, on the other hand, is committed to taking our investors through the entire journey. This commitment is one of the reasons we focus on the “underappreciated sector” of loans ranging from $3 million to $25 million. Our investment business model consistently generates risk-adjusted returns that
surpass industry averages. It combines the strengths of both large and small financial service providers, allowing us to of fer a personalized service to both investors and borrowers. Since inception, PrivateInvest dedicated its initial two years to the development of the non-bank lending business model and grew it methodically. This endeavour included assembling a highly capable team with impressive experience and skills. Shareholders of the Investment and Facility Manager, PrivateInvest Credit, made substantial investments into the Fund and established the PrivateInvest Wholesale Funding Line of Credit. With a robust and well-established foundation, we are now ready to scale in a measured way. We welcome you to join us in capturing a growing share of the non-bank lending sector. As we continue to expand, PrivateInvest’s strategic goal is to retain our position of being BIG ENOUGH. SMALL ENOUGH. We don’t necessarily aim to be the largest player in town, rather, our aspiration is to strive and set the benchmark within our industry.
PrivateInvest Capability Statement – December 2023
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The Team Our specialist finance team has decades of property experience in structuring equity and debt for property transactions at leading investment firms and institutions. Through the experience of our team, its focus on transparency, oversight, collaboration, and governance, PrivateInvest has established an investment fund management company that is BIG ENOUGH. SMALL ENOUGH to deliver to deliver quality investment returns whilst being a property capital partner to the property sector. LEFT TO RIGHT: Natasha Birch (Marketing Consultant) , Brett Roberts (Graphic Design - Marketing), Leon Boyatzis (Director – Head of Funds Management – Trustee Board Member), Andrew Groves (Capital Origination), Sarah de Rozario (Group Finance Director ), Davide Bini (Credit Origination), Greg Peel (Non-Executive Chair Trustee and Chair Investment Review Committee), Andy Parsons (Investment and Credit Analyst), Naomi Roberts (Director – Legal – Investor Relations – Trustee Board Member), Mark Roberts (Executive Chairman – Founding Managing Director), Tom Ellen (Investment Review Committee), Belinda Stewart (Office Manager - South East Asia Co-Ordinator), Tim Jones (Investment Review Committee), Elizabeth Court (Non Executive Director - Trustee Board Member)
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PrivateInvest Capability Statement – December 2023
PrivateInvest Capability Statement – December 2023
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The PrivateInvest Group Key Persons Mark Roberts
Leon Boyatzis
EXECUTIVE CHAIRMAN FOUNDING MANAGING DIRECTOR
DIRECTOR - HEAD OF FUNDS MANAGEMENT TRUSTEE BOARD MEMBER
Mark brings over 30 years’ property experience to PrivateInvest and its clients in both the public and private sectors. His real estate experience includes corporate and property finance, funds management, asset management, investment management, and large-scale commercial property development. Mark founded PrivateInvest over a decade ago, taking a measured approach to its evolution as it grew. Four years ago, Mark identified the opportunity to move into the non-bank lending sector, one of Australia’s fastest growing asset sectors which PrivateInvest has now become a genuine alternative finance solution to underserviced lenders in the commercial property market. Since that time, PrivateInvest has grown providing a range of tailored financial solutions to qualified borrowers in the real estate sector and supporting a range of significant projects and developments across Australia. Mark has directed and executed a number of significant transactions in the finance, property and securities industries including listing an ASX entity as a major shareholder and as Managing Director. This entity became Australia’s largest in its sector, managing 5,600 rental retirement units and providing asset, facilities, tenancy, and funds management services to institutional, wholesale and retail owners. The Roberts family private investment entity has also undertaken direct developments in the industrial, commercial, retail, hospitality and healthcare sectors. Mark is based in Perth, Western Australia. Contact Mark Roberts Phone: +61 419 745 544 Email: mark.roberts@privateinvest.com.au
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PrivateInvest Capability Statement – December 2023
Leon has over 25 years’ experience in property funds management. Leon’s background combines accounting, finance, funds management and property valuation. He has held senior property industry funds management roles for listed, unlisted, retail and wholesale funds ranging from private family of fices to large multinational organisations, including Multiplex and Brookfield. With highly valuable expertise in investment, property valuation, and finance, Leon has built a reputation for driving fund performance and exceeding benchmark investor return hurdles. This has been achieved through, for example, the development of detailed feasibility and investment models to support valuation analysis, accounting analysis including property cashflow, and fund models to drive strategic decision making and internal valuations. Leon has been the responsible manager for a number of responsible entities holding Australian Financial Services Licences with investment in property developments on behalf of retail and wholesale clients. Leon is a Chartered Accountant, and a Certified Practicing Valuer with the Australian Property Institute. He holds a Bachelor of Business (majoring in Accounting and Business Law). Leon is based in Perth, Western Australia. Contact Leon Boyatzis Phone: +61 408 994 089 Email: leon.boyatzis@privateinvest.com.au
Naomi Roberts
Greg Peel
DIRECTOR – LEGAL INVESTOR RELATIONS - TRUSTEE BOARD MEMBER
NON- EXECUTIVE DIRECTOR – TRUSTEE BOARD MEMBER - CHAIR INVESTMENT REVIEW COMMITTEE
Naomi has over 20 years’ experience in the property and funds management industries, with significant expertise in compliance, corporate governance and legal functions. Her real estate experience spans across working in the family private business which involved direct development of commercial, industrial, retail and residential projects. Naomi was previously involved in an ASX-listed national af fordable rental retirement management company which became Australia’s largest in its sector, providing asset, facilities, tenancy and funds management services to institutional, wholesale and retail owners. While studying towards a Bachelor of Laws, Naomi worked in a small legal practice in Queensland which provided excellent experience across many facets of legal matters including property, financing, conveyancing, wills and estates. She relocated to Western Australia and worked in a litigation firm as an Executive Paralegal while completing her law degree. Naomi is the Responsible Manager on the PrivateInvest Australian Financial Services Licence. Naomi has been admitted to the Supreme Court of Western Australia (2022) and also holds a Bachelor of Business (major in Marketing). Naomi is based in Perth, Western Australia. Contact Naomi Roberts Phone: +61 407 370 958 Email: naomi.roberts@privateinvest.com.au
Greg has over 35 years’ experience in the banking and finance industry including corporate finance, credit and risk management, and business banking. He is highly experienced in the areas of enterprise development, funding and business modelling and partnership identification and development particularly in the area of social finance and impact investment. He established Bendigo and Adelaide Bank’s Business and Asset Finance divisions and the Strategic Market division. Greg also co-founded and was the Chief Executive Of ficer and Managing Director of Community Sector Banking, a financial institution focused on notfor-profit, impact investing and social infrastructure financing. Greg was the Director of Business Development with the New South Wales Aboriginal Land Council where he was responsible for the development of a corporatisation strategy which included enterprise and housing policy. He has held numerous advisory roles and directorships including Australia Social Investment Trust (Executive Director), Alternative Finance Custodians (Director and Chair of Trustee), Community Sector Enterprises and Community Sector Banking (CEO and MD), Bendigo Asset Management (Chair), Social Enterprise Finance Australia (Director), Eco Trust Australia (Director), Community Development Australia (Director and Chair) and LendForGood (Advisor). Greg has also held positions as Senior Credit Analyst, and Corporate Relationship Manager at Banque Nationale de Paris, Standard Chartered Bank and State Bank of NSW, London. Greg holds a Bachelor of Economics. Greg is based in Nelson Bay, New South Wales.
PrivateInvest Capability Statement – December 2023
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The PrivateInvest Group Key Persons Elizabeth Court
Sarah de Rozario
NON-EXECUTIVE DIRECTOR TRUSTEE BOARD MEMBER
GROUP FINANCE DIRECTOR
Elizabeth has over 30 years’ banking, finance and treasury experience. She has experience as an economist within the banking and finance industry. This background combines financial risk management, debt advisory, treasury policy together with client relationship management, corporate governance, systems, and training. Within the financial services sector, her roles have included: Treasury Consultant with ANZ Bank (where she provided economic advice and analysis, financial modelling and risk management), Assistant Treasurer with Colly Farms Cotton (treasury and risk management functions for Australia’s largest marketer and producer of cotton), Corporate Treasury Advisor with Societe Generale (treasury risk management services), and
Sarah is a Certified Practicing Accountant and finance executive with over 25 years’ experience in the areas of business and finance, strategy, risk and compliance, process engineering and governance. Sarah has worked across the world in senior finance positions. Formerly the CFO for Swedish company ACE Interactive, Sarah was also based in Dubai with the International Cricket Council (ICC) as the Global Development (Compliance & Reporting) Manager, overseeing a US$300 million world cricket funding program for 93 countries and 5 Global Regions. Other roles UK based, included the engineering and construction sector with FTSE 200 listed companies Balfour Beatty & Mowlem as Group Reporting Controller (accounting for revenues of £7.49 billion and a forward order book of £11.50 billion), Shell UK – Chemicals Downstream, and Head of European Finance at Holmes Place (high end luxury Co in the wellness industry).
Consultant with Barrington Treasury Services (risk consulting and governance including treasury policy development, systems, and transactional banking review).
Sarah holds a Bachelor of Business, Major in Accounting and Business Law.
Elizabeth is the principal of Court Consultants and has recently retired her position as a Membership Director of the Private Wealth Network, an independent membership organisation of over 200 Family Of fices.
Phone: +61 458 662 747
In addition to her role at PrivateInvest, Elizabeth holds a Non-Executive Director position with Grey Innovation Group, a technology commercialisation company, and a Vice Chair Board position with Court Grammar School. Elizabeth is also a Member of the Board of Trustees of the Sir Frank Ledger Charitable Trust. Elizabeth holds a Bachelor of Economics and is Member of the Australian Institute of Company Directors. Elizabeth is based in Perth, Western Australia. 26
PrivateInvest Capability Statement – December 2023
Sarah is based in Perth, Western Australia. Contact Sarah de Rozario Email: sarah.derozario@privateinvest.com.au
Belinda Stewart
Andrew Groves
OFFICE MANAGER – SOUTH EAST ASIA CO-ORDINATOR
CAPITAL ORIGINATION
In 2023, Belinda joined the PrivateInvest team, bringing with her an impressive portfolio of over two decades of professional expertise. As a dynamic executive assistant and administrator, Belinda has a proven track record of supporting senior executives, C-suite professionals, teams in high-performance environments and industries. Her experience extends across diverse sectors, including oil & gas, construction, and finance.
Andrew Groves has over 20 years’ experience within the Australian Markets sector. With a career spanning several decades, he has developed a deep understanding of various financial products, including discounted securities, bonds, interest rate derivatives, and general banking products. His expertise extends to both front and back-of fice functions, making him well-versed in the intricacies of the industry.
Belinda is renowned for her exceptional adaptability and flexibility, having dedicated five years to the finance sector, where she has consistently demonstrated her organizational prowess, adept workflow management, and unwavering commitment to enhancing productivity. She possesses a deep proficiency in a wide range of business applications and systems, encompassing ERP to project management tools.
Andrew’s professional journey reflects his versatility. He played a pivotal role in the establishment and financial success of the ANZIB/Wealth Management Joint Venture, demonstrating strong business development skills.
One of Belinda’s standout assets is her multilingual fluency in English, Malay, Mandarin, Cantonese, and Hokkien, providing a significant advantage in global communications and operations. Belinda is based in Perth, Western Australia. Contact Belinda Stewart Phone: +61 468 487 836 Email: belinda.stewart@privateinvest.com.au
His career at ANZ Group from 1994 to 2011 involved pioneering the Margin Lending Business, contributing to the ANZ Diversified Margin Loan, tailoring investment and risk management solutions and managed internal relationships across ANZ to drive new product initiatives. Externally, he managed private client relationships and collaborated with large private companies and ASXlisted organizations. In 2014, Andrew joined National Australia Bank as an Associate Director, boosting FUM and revenue across diverse distribution channels for five years. Andrew assumed the role of Private Chief Financial Of ficer at Candor Family Of fice, of fering comprehensive financial advice to high-net-worth families, akin to institutional or corporate clients. His diverse expertise renders him a valuable asset in the financial industry. Contact Andrew Groves Phone: +61 411 443 971 Email: andrew.groves@privateinvest.com.au
PrivateInvest Capability Statement – December 2023
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The PrivateInvest Group Key Persons Andy Parsons
Davide Bini
INVESTMENT - CREDIT ANALYST
CREDIT ORIGINATION
Davide joined the PrivateInvest team in 2023, bringing with him a multifaceted professional background.
Andy joined PrivateInvest in 2022, relocating from his home in Brisbane to work with PrivateInvest in Sydney.
Initially serving as a Project Manager at Multiplex Constructions (VIC) for 5 years, he transitioned into the finance sector with a role at Ernst & Young UK in Mergers & Acquisitions. Over the ensuing 15 years, Davide navigated through roles in Corporate Property Finance and Private Banking at esteemed institutions such as nab, CBA, and Westpac. During his time at CBA, he played an instrumental role in establishing the Broker & Agency Sales Property division and supervising a $550m CMBS Warehouse Facility for AM Lending.
He was previously a Lending Analyst in the Loan Origination Services team at Auswide Bank, where he was responsible for providing client services for thirdparty brokers. Andy supported the end-to-end lending process for loan applications, preparing credit papers for credit assessment by the credit team, completing due diligence activities, and verifying supporting financial information provided as part of home loan applications.
His contribution to the property sector is further evidenced by his presentations for UDIA NSW and occasional seminars for the Property Council. Before embracing his role at PrivateInvest, Davide was at the helm of East Coast operations for Dorado Property. Davide holds a degree in Applied Science (Building Construction Management) from Victoria Universityas well as an MBA from Melbourne Business School and London Business School. More recently, he has branched into the field of law, earning a Bachelor of Laws from UNE and presently undergoing his PLT at the College of Law. Davide is based in Sydney, New South Wales. Contact Davide Bini Phone: +61 473 123 294 Email: davide.bini@privateinvest.com.au
Andy was responsible for the management of lending applications (from origination to settlement), preparing and assessing credit submissions, resolving application and credit structuring issues for brokers, lenders and relationship managers, and completing employment verifications, credit checks and assessing valuations. He was also responsible for applying bank credit policies to satisfy the bank’s responsible lending criteria. Andy worked as an intern with Exceed Capital while studying his degree which gained his experience in fund management and finance administration. His responsibility with PrivateInvest is working with the loan origination team on draf ting credit papers, the capital origination team on the draf ting of Information Memorandums and the finance feasibility analysis with the funds management team. Andy holds a Bachelor of Business, majoring in Finance and Economics. Andy is based in Sydney, New South Wales. Contact Andy Parsons Phone: +61 478 899 169 Email: andy.parsons@privateinvest.com.au
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PrivateInvest Capability Statement – December 2023
Tom Ellen
Brett Roberts
INVESTMENT REVIEW COMMITTEE
GRAPHIC DESIGN - MARKETING Brett joined the PrivateInvest team in 2023, bringing a wealth of graphic design and marketing expertise. Brett graduated from SAE Creative Media Institute in 2021 with a Bachelor of Design and an award for high achievement, having averaged distinction marks throughout his studies. He went on to work in a variety of professional environments including creative studios and corporate of fices, specialising in graphic design. As well as craf ting insightful and innovative visual designs, Brett is proficient in creating motion graphics, animation and social media content. Brett is based in Perth, Western Australia.
Tom has extensive experience in the banking and finance sector, with expertise in the areas of credit and risk analysis, compliance and governance, process and policy reviews, change management, and identifying and implementing business performance opportunities to improve operating ef ficiencies and ensure compliance adherence. Tom had over 20 years’ experience with National Australia Bank as Regional Credit Executive, Senior Credit & Risk Manager, Credit & Risk Manager, and Relationship Manager Business Banking. He has developed comprehensive risk management templates for National Australia Banks’ Operational Risk and Compliance Team, numerous business process improvement initiatives to improve both business ef ficiencies and customer experiences, and change management platforms for the implementation and roll out of process improvements. Tom has managed risk dashboard and quality assurance controls to both maintain and improve banking industry compliance functions and their implementation, leading a team of credit and risk managers to deliver leading, independently assessed Asset Quality Assurance results. Tom holds a Bachelor of Business and Securities Institute of Australia Certificate in Financial Markets. Tom is based in Perth, Western Australia. Contact Tom Ellen Phone: +61 403 677 106 Email: tom.ellen@privateinvest.com.au
PrivateInvest Capability Statement – December 2023
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The PrivateInvest Group Key Persons Tim Jones INVESTMENT REVIEW COMMITTEE
Tim has over 27 years’ experience in property funds management, property operations, property investment and development markets throughout Australia. He is currently the principal of Wholesale Securities, a fund manager for the commercial real estate sector. Tim was a senior executive for 15 years with the Sarich Family Of fice, Western Australia’s largest private property investor at the time. Tim was responsible for building the Sarich Family Of fice into a major property portfolio which included master planned estates and the acquisition of commercial buildings. Prior to this, Tim’s roles included: Director / State Property Manager with Macquarie Bank’s Development Funds Management team, where he was responsible for establishing various projects in direct property investment and development, with a portfolio valued in excess of $800 million. Head of Funds Management with Goldmate Property Group in Sydney ,with the responsibility of establishing their property funds management business. Tim holds a Bachelor of Business (Valuation and Economy), is an Associate with the Australian Property Institute, and is a Fellow of the Financial Services Institute of Australasia (FINSIA). Tim is based in Perth, Western Australia. Contact Tim Jones Phone: +61 410 571 486 Email: tim.jones@privateinvest.com.au
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PrivateInvest Capability Statement – December 2023
How Do I Learn More? It’s more than a name. It’s a promise. It’s where people make the difference. PrivateInvest is committed to embracing educational and research-oriented promotional activities. We are dedicated to exploring and promoting topics of interest to our investors while providing high-quality information on financial markets and related subjects. Visit the PrivateInvest website, where you’ll find informative videos about our Funds and Trusts, downloadable Fact Sheets covering various aspects of our of ferings, valuable information for borrowers, details on PrivateInvest Insights events and webinars, as well as in-depth PrivateInvest Insights white papers focusing on the sector. To stay informed about upcoming events or pertinent industry updates, we encourage you to connect with us on our PrivateInvest LinkedIn page (QR Code provided). You can also reach out to us anytime at 1300 2 INVEST (1300 2 468 378) or via email at corporate@privateinvest.com.au, and our dedicated team will assist with your inquiries.
PrivateInvest Website
PrivateInvest LinkedIn
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Important Notices Professional Investor Capability Statement
Purpose of This Statement
Investment in PrivateInvest Funds and Trusts is only open to wholesale clients or professional investors, as defined in the Corporations Act 2001 (Cth).
The purpose of this Capability Statement is to of fer information about PrivateInvest Funds and Trusts. Prospective investors should request the Information Memorandum for PrivateInvest First Mortgage Income Fund or Second Mortgage Trusts to make informed investment decisions.
No Responsibility for Document Contents This Capability Statement is provided to the best of our knowledge, and its terms are believed to be accurate as of the date of issuance. To the fullest extent allowed by law, neither the Trustee nor any associated parties, related entities, directors, officers, employees, advisors (including financial, accounting, and legal advisors), or representatives make any recommendations regarding this Capability Statement. Additionally, no express or implied warranties are made concerning its accuracy, reliability, or completeness. This document may not include all the necessary information for prospective investors evaluating potential investments in PrivateInvest Funds and Trusts.
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PrivateInvest Capability Statement – December 2023
Forward-Looking Statements This Capability Statement may contain forecasts and forward-looking statements, which are the Trustee’s best estimates based on current circumstances. These statements involve subjective judgments and assumptions about future events, which may or may not prove correct. The Trustee cannot guarantee the realisation of these forecasts and forward-looking statements.
Directory PrivateInvest Pty Limited ACN 626 703 026 Authorised Representative Number 001284225 Perth
Ground Floor, 561 Stirling Highway Cottesloe, WA 6011 Sydney 2 Short Street, Double Bay, NSW 2028 Postal PO Box 477, Cottesloe, WA 6911 Corporate/Investment 1300 2 INVEST (1300 2 468 378) Seeking Finance 1300 4 FUNDING (1300 4 386 346) Email corporate@privateinvest.com.au Web www.privateinvest.com.au Investment Manager PrivateInvest Credit Pty Limited ACN 625 468 215 Perth Sydney Postal Phone
Ground Floor, 561 Stirling Highway Cottesloe, WA 6011 2 Short Street, Double Bay, NSW 2028 PO Box 477, Cottesloe, WA 6911 1300 2 INVEST (1300 2 468 378) 1300 4 FUNDING (1300 4 386 346)
Trustee PrivateInvest Capital Securities Limited ACN 611 892 249 Australian Financial Services Licence No 491287 Perth Sydney Postal Phone Email
Ground Floor, 561 Stirling Highway Cottesloe, WA 6011 2 Short Street, Double Bay, NSW 2028 PO Box 477, Cottesloe, WA 6911 1300 2 INVEST (1300 2 468 378) corporate@privateinvest.com.au
Registry Services Automic Group Pty Ltd Of fice Phone Email
Level 5, 126 Phillip Street Sydney, NSW 2000 1300 288 664 hello@automicgroup.com.au
Accounting and Taxation Accountants Pitcher Partners Of fice Phone
Level 11/12-14 The Esplanade, Perth WA 6000 (08) 9322 2022
PrivateInvest Capability Statement – December 2023
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PrivateInvest Capability Statement – December 2023
