INVESTOR FAQs

Many Australians are familiar with real-estate investing through home ownership or buying a rental property. But what about investing in real estate debt? Investing in private credit funds can be an attractive option for many investors seeking income and diversification to their portfolio. These FAQs provide an overview for investors considering private credit funds.

Each investor should perform thorough due diligence and consult with financial advisers to align such investments with their financial goals and risk appetite. Here are some common FAQs that potential investors might have:

General Questions

Investment Structure and Returns

Risks and Due Diligence

Fees and Costs

Liquidity and Redemption

Fund Management and Operations

Legal and Regulatory

Investment Process

INVESTMENT STRUCTURE AND RETURNS

What types of private credit strategies are available?

Common strategies include direct lending, mezzanine financing, distressed debt, and real estate debt.

What kind of returns can I expect?

Returns vary by strategy and risk level but generally range from mid-single digits to low double digits annually. Above all, remember the golden rule that higher returns involve higher risk.

How are returns distributed?

Returns can be distributed periodically (monthly, quarterly, annually) or upon the loan’s maturity, depending on the fund’s structure.