Invest in Australian
Private Credit
Msquared Capital is a trusted private credit provider. It sources and evaluates quality borrowers needing finance and matches them with funding from one of our three investment vehicles.
Income Generation
& Diversification
Msquared Capital provides investors with unique access to the Australian private credit market through the provision of registered mortgage investment opportunities, which offer competitive income generation, diversification, and capital preservation. Speak directly to the decision makers to begin your journey into private credit today.
Income G & D
Investment Products
Diversified First
Mortgage Fund
Invest in a diversified portfolio of first registered mortgage investments. The Msquared Mortgage Income Fund has a maximum LVR of 70% for any given loan, and will not have exposure to vacant land, construction, or development loans.
Historical reports
as at NOVEMBER 2023
as at NOVEMBER 2023
Distributions
Diversified High-Yield
Mortgage Fund
Invest in a diversified portfolio of mortgage investments aimed at ensuring the Fund delivers a higher return for investors. The Msquared High Yield Mortgage Income Fund has a maximum LVR of 80% for any given loan, which includes shorter-term loans with limited exposure to vacant land, construction, or development.
Historical reports
as at NOVEMBER 2023
as at NOVEMBER 2023
Distributions
Single Asset
Investments
Curate your investment portfolio by investing in individual loan opportunities that suit your risk profile. The Msquared Contributory Mortgage Income Fund assesses LVRs on a case-by-case basis, with limited exposure to vacant land, construction, or development. The Fund targets a net return between 7.50% p.a. and 14.00% p.a.
TARGET RETURN, NET OF FEES
Investment Term
Distributions
Exclusive Database
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Lending Process
The Lending
Process
Since inception, each Fund has paid monthly distributions, and all loans have been repaid in full. Msquared Capital applies a robust and disciplined credit approach which focuses on five key areas, known as ‘The 5Cs’:
01 Character
Msquared Capital conducts extensive background checks on the prospective Borrower to help ensure we are lending to someone of good character. We undertake searches demonstrating their past behaviour in relation to prior debt obligations, their repayment history, as well as personal and professional reputation.
02 Capacity
A clear exit strategy for the proposed mortgage must be established early in the credit review process. This may include refinancing to another lender at the end of the loan term, or sale of the security property. Another critical consideration is the prospective Borrower’s net asset position relative to the loan amount.
03 Cashflow
04 Collateral
Proposed security properties must be assessed based on the worst-case scenario of Borrower default. This means that the Loan-to-Value Ratio (LVR) should be carefully selected so that recovery in the event of default will be achievable. The quality of the security property, its geographical location, its saleability, and existing security interests on it, are critical factors in Msquared Capital’s assessment of the collateral to a proposed loan. In addition, Msquared Capital engages reputable third parties, including approved valuers, whose reports are thoroughly reviewed before approving a loan.
WHAT OUR PARTNERS SAY
MSquared Capital
In the media
- Investors
- 27 October 2023
Msquared Capital Managing Director, Paul Miron, speaks with David Koch on ausbiz to discuss the latest developments in private credit, the economy, and how Msquared is positioning our funds accordingly.
- Investors
- 25 October 2023
The most recent inflation figures, both here and in the US, reinforce that inflation is here to stay, with US inflation having risen to 3.7% in August 2023 (up from 3.2% in July 2023), and Australian inflation remaining elevated at a rate of 5.2% in June 2023. At the same time, expectations of higher oil […]
- Investors
- 20 August 2023
As the outgoing Reserve Bank Governor, Philip Lowe, faced the House of Representatives Standing Committee on Economics last Friday, a sigh of relief was shared amongst mortgage holders that “the worst is over” regarding the fight against inflation. It only took 12 interest rate hikes to bring inflation at bay in the quickest contraction in […]
- Investors
- 07 August 2023
- Investors
- 22 June 2023
At the beginning of 2022, I posed the following question to an audience of sophisticated self-directed investors: Is Private Credit the new megatrend in Australia? It is important to remember these were carefree times when the official cash rate was at a historic low of 0.10%, and terms such as ‘cost of living pressure’, ‘mortgage […]
- Investors
- 19 April 2023
How Rapid Rate Rises Put Banks in Peril For the first time since the GFC, the fragility of the global banking system has come into question as the 16th largest bank in the US collapsed, and one of Europe’s premier investment banks, Credit Suisse, sought rescue from the Swisse National Bank. How is it that […]
- Investors
- 14 March 2023
It is time to say it – Enough is Enough! We do not need any more rate increases! The official RBA Cash Rate has increased for the 10th consecutive time – unprecedented in our modern economic history. We have now reached a stage where it is becoming unnerving as to when our path of rate […]
- Investors
- 06 February 2023
As the dust settles from our post-Australia Day celebrations, we ease into the New Year refreshed and invigorated with our resolutions and plans in motion. We begin to reflect on and update our personal and financial goals for the year and ponder the new year challenges for all of us. The New Year brings a […]
- Investors
- 12 October 2022
Despite the rhetoric from central bankers and global leaders blaming the world’s current economic woes on inflation, a war in Europe, an energy crisis and irrational consumer sentiment, there is an obvious alternate root cause to the world’s current financial dilemmas. Higher Interest Rates Excessive use of monetary loosening during the COVID-19 era has resulted […]