December 2020 Monthly ReportCapspace Private Lending Fund
Goodbye to 2020, welcome 2021
Thank you for your support of Capspace in 2020, our founding year.
It’s been a very difficult year for many and at this time our thoughts are with the many people around the world impacted by the COVID19 pandemic whether through health or economic distress. During times like these that we are grateful for how fortunate we are to live in Australia.
Despite the major challenges of 2020, Capspace successfully launched our Private Lending Fund. We have finished the year strongly with record loan growth and investor support. Our portfolio is well positioned to perform regardless of the outlook for 2021. We remain conservative in our risk settings until the economic fog clears and decisions can be made with more certainty.
LVR remains at 54%
During December, Capspace Private continued to provide critical funding for Australia’s small to medium-sized enterprises (SME). We have no loan exposure on Sydney’s Northern Beaches subject to the recent COVID19 outbreak and our entire portfolio is performing as expected, with all loans operating within the original approvals.
Each loan is well secured to cover the Fund’s capital position. As our loan portfolio grew this month, we were able to maintain our average Loan to Value Ratio (LVR) at 54%, highlighting the strength of the new transactions and our overall security position.
The search for yield
This remains a common theme in the financial press. Record low interest rates force investors to consider a range of alternatives. We believe that our growing portfolio of loans to SME customers is an important form of funding for these businesses but also a sustainable source of strong return for investors. In 2021, Capspace is continuing to pay 8% per annum, with the interest paid monthly into your account.
We are actively growing our Fund through strong demand from both investors and borrowers.
If you would like to increase your exposure to Australia’s growing SMEs or recommend Capspace to others in your network, we are always available to discuss new opportunities.
Best wishes for a healthy, happy and prosperous 2021.