1st Mortgage Fund
The Fund was launched in November 2020 under the Catalytic Funds VCC umbrella. It is managed by Catalytic Funds Management in Singapore, in close collaboration with Banner Capital Management -- an Australian property development finance specialist manager, licensed by the Australian Securities and Investment Commission. The Fund is a "Two Teams; One Dream" project with Catalytic taking the investment decisions on which projects to invest in, but on the recommendations of Banner which provides on-the-ground research, due diligence and project monitoring. Banner has a decade of first mortgage lending experience and an enviable track record with not a single year of negative returns in this strategy since its inception in 2010.
The Fund plays to Catalytic’s key requirement of security of principal by providing financing to Australian property developments with collateralization levels at which it would be difficult for the principal lent to see any impairment. The Fund offers Share Classes at differing levels of collateralization to meet the risk:return appetite of investors. A 50% loan-to-value Share Class finances properties with valuations 100% above the value of the principal advanced and targets an 8% annualized return. A 70% loan-to-value Share Class finances properties with valuations a little above 40% of the value of the principal advanced and targets an 11% annualized return.