Invest in an innovative high yield fund, with 12% target returns, whilst supporting the Australian SME sector.
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Return since inception
As at 31 July on a net basis. Inception date: 1 August 2017. No losses impacting loan principal or interest payments.
Small to Medium Enterprises (SME’s) are defined by the ABS as businesses with fewer than 199 employees. They provide employment to almost 70% of the Australian workforce and account for over half of the output of the private sector.SME’s may have more difficulty obtaining funding as the banks generally require significant personal collateral in the form of property to borrow.Macquarie Bank estimates there is a $70bn underbanked market and Morgan Stanley estimate the market for this lending will grow to $11.4 billion by 2020.Financial Technology (Fintech) lenders are using technology to increase the efficiency of SME lending and are targeting niches in the SME lending market. Fintech lenders require funds to lend to SME’s, and opportunities to earn target returns of up to 12% can be found in the market with the right network. With the right funding solution for the lenders, support can be given to the SME sector.
To request a copy of the full ratings report, please contact Brett Craig at firstname.lastname@example.org
HIGH YIELDS WHILST SUPPORTING THE SME SECTOR
To capture this opportunity the Aura High Yield SME Fund invests through leading on-line lending platforms in Australia providing the potential for wholesale investors and family offices to access high returns and a target of capital preservation as part of a smartly diversified portfolio that includes exposure to credit and fixed income investments.
Our strategy is designed to produce returns that have little or no correlation to public markets, high cash flow and low volatility. The fund will work with Marketplace and peer-to peer lenders who lend to SMEs. The fund will look to purchase notes from SPVs, or units in managed investment schemes that hold the underlying loans originated by the originators. We will also consider other investment methods as the market matures.
Our investment team has tracked over 20 Australian Fintech platforms and we have completed preliminary due diligence on all those, thus giving investors access to this attractive, fast growing and increasingly complex asset class in a very simple to access fund. We will only work with the originators that meet our investment criteria.
AURA’S INNOVATIVE SOLUTION TO THE FUNDING PROBLEM
ENHANCED ANALYSIS AIMED AT PROTECTING YOUR CAPITAL
Members of the Investment Committee and Management Team have extensive experience in Fintech, VC, Lending and Debt Markets, which brings a unique skill set to assess a new credit class that is emerging in Australia. The team has been at the forefront of this movement, providing an edge that sets us apart from traditional credit investors.The Aura High Yield SME Fund aims to leverage the in-house tech focused VC experience in assessing the early stage SME Fintech lenders as the first part of the credit process. This is vital to assess the lenders who will be able to service their portfolios on an ongoing basis, and to provide quality deal flow on an ongoing basis as the market and the Fund grows.From there, more traditional analysis of the underlying lend and portfolio characteristics is undertaken, with a view to minimise capital loss and produce consistent returns throughout the growth of the industry and through economic cycles.
ACCESS TO UNIQUE ASSETS UNAVAILABLE IN PUBLIC MARKETS
Aura’s extensive network and experience in both lending and fintech businesses opens unique investment opportunities not available in public markets. We aim to target the premium players in the Fintech SME lending market to maximise risk adjusted returns for investors.
Venture Capital & Private Equity
Liquid Strategies & Hedge Funds
For Further Information
Brett Craig, Director
D: +61 2 9199 8859
Click here to download the High Yield SME Fund Information Memorandum
Issued by: Aura Funds Management Pty Limited
ACN 607 158 814, May 2017
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This report is provided to you for information purposes only by Aura Funds Management Pty Ltd (Aura) (ACN 607 158 814, Authorised Representative 1233893 of Aura Capital Pty Ltd AFSL 366 230). Aura is the Trustee of all the funds mentioned and a subsidiary of Aura Group Pty Ltd.
Any financial product advice given in this report is of a general nature only. The information has been provided without taking into account the investment objective, financial situation or needs of any particular investor. Therefore, before acting on the information contained in this report you should seek professional advice and consider whether the information is appropriate in light of your objectives, financial situation and needs. Aura does not guarantee the performance of its funds, the repayment of any capital or any rate of return. Investing in any financial product is subject to investment risk including possible loss. Past performance is not a reliable indicator of future performance. Information in this report is based on the information provided to Aura by third parties that may not have been verified. Aura believes that the information is reliable but does not guarantee its accuracy or completeness. Aura is not able to give tax advice and accordingly investors should obtain independent advice from an accountant and/or lawyer before making any decision based on the tax treatment of its investors. You should read the Fund Fact Sheet or Information Memorandum and seek professional advice before making a decision to invest in any of the funds.