November 2020 Monthly Report

Capspace Private Lending Fund

Growing sustainable businesses

The Capspace Private Lending Fund continued to provide critical funding for Australia’s small to medium-sized enterprises (SME), which are poised to benefit from recent signs that the economy is indeed on the path to recovery.

This is reflected in the latest NAB Monthly Business Survey, released on 10 November, which saw business confidence rise to its highest level since mid-2019, led by a large gain in Victoria. 

Your investment with Capspace is an investment in Australian SMEs. These businesses will continue to employ Australians, provides the goods and services that our communities need and ensure we grow our way out of the recession.

There are more than two million SMEs in the Australian market and they are the engine room of the economy. They are also businesses most neglected by the major banks. As a result, Capspace plays an essential role in backing their investment plans and we continue to be in high demand among SME borrowers.

Cash rate reaches a new record low

During November the Reserve Bank of Australia (RBA) reduced the official cash rate by 0.15% to 0.10%, a new record low. The RBA statement accompanying the rate cut focused on job creation and supporting the recovery of the Australian economy through the pandemic induced recession.

A quick scan of available 12month term deposit rates revealed the highest rate of 0.85%. To put that into perspective, at an 8% per annum yield, Capspace is paying nearly 10 times the return of current term deposits, with the interest paid monthly into your account.

commercial loans

Loan portfolio grows as LVR remains at 54%

Capspace diligently monitors our loan portfolio on a monthly basis. The portfolio is performing as expected, with all loans operating within the original approval conditions and making scheduled interest and principal repayments.

In addition, 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.

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 our Fund to others in your network, we are always available to discuss new opportunities.

Review our other monthly reports

If you would like to increase your exposure to Australia’s growing SMEs or recommend us to others in your network, we are always available to discuss new opportunities.