Auspac Real Estate Fixed Income Fund
- A Securitized Private Credit Fund -
The Auspac Real Estate Fixed Income Fund focuses on capitalizing on opportunities within Singapore’s Private Credit Market, particularly in the realm of short-term real estate-backed lending. We have identified an opportunity within an ever-increasing funding gap in Singapore’s private credit market. Recent regulatory changes and tightening credit cycle have been a catalyst for greater lending prospects amongst alternative lenders. The fund primarily targets short term bridging deals to approved corporate entities, which would in turn generate low volatility, attract annualized year on year returns and ultimately offer good protection against market recessions and inflation.
What is Private Credit?
Private Credit (also known as private debt) refers to loans and credit investments made by non-bank institutions — like private funds, asset managers, or institutional investors — to companies, projects, or real estate assets without issuing securities on public markets. It is a major segment of the private capital market and has grown rapidly in recent years due to its flexibility and higher yield potential.
Auspac Private Credit Fund
Investment Strategy
Asset-Backed Lending Strategy
The objective of the fund is to prioritize the preservation of investors’ capital by employing an asset-backed lending strategy focused on minimizing potential downside. The fund aims to generate steady, predictable income of 8% to 10% per annum by investing in secured lending opportunities within Singapore. With no exposure to the equities market, the fund offers a fixed Net Asset Value (NAV), and investors’ principal is protected by real estate based in Singapore.
The fund manager allocates capital to a portfolio of short-term bridging loans. Due to strong demand for such loans, the fund manager carefully filters and assesses borrower quality through a thorough underwriting process. The underlying loans generate interest and fees, which serve as the fund’s primary source of income. The fund manager distributes dividends to investors on a quarterly basis. Since the interest rates and fees are agreed upon upfront, the private credit fund is able to deliver a predictable income stream to its investors.
Click to view How Auspac Real Estate Fixed Income (Private Credit Fund) works.
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Underserved Private Credit Market: The fund addresses the growing funding gap in Singapore's private credit sector, which has expanded due to recent regulatory changes and a tightening credit cycle. These factors have increased lending opportunities for alternative financiers.
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Loan Focus: Primarily, the fund engages in short-term bridging loans. These loans typically have durations ranging from 3 to 12 months, offering high liquidity and reduced exposure to market volatility.
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Collateralization: To mitigate default risks, the fund securitize loans with borrowers' real estate assets, alongside corporate and/or personal guarantees. In the event of a default, these securities are utilized to recover the principal sum and returns.
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The Auspac Real Estate Fixed Income Fund is designed for accredited investors seeking stable, short-term investment opportunities with attractive returns and mitigated risks. By leveraging the expertise of Auspac Investment Management and focusing on secured real estate assets, the fund offers a compelling option for those looking to diversify their investment portfolios within Singapore's real estate market.
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For more detailed information, prospective investors are encouraged to consult the fund's fact sheet and reach out to Auspac Investment Management directly.
Key Features of the fund:
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Fixed NAV: No fluctuation on invested capital.​
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Short Investment Tenure: Highly liquid investment due to the short tenure placement of one year.
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Fixed Dividend Payout: Investment return is fixed and payout in quarterly basis.
Please CLICK here to request a copy of our Fund Fact Sheet.​
Important Information: This is a financial promotion for Accreditedl Clients and/or distributors only. The information in this document should not be considered as an offer, or solicitation, to deal in any funds. The information is provided on a general basis for information purposes only and is not to be relied on as investment, legal, tax, or other advice as it does not take into account the investment objectives, financial situation or particular needs of any specific investor. Any securities mentioned herein are for illustration purposes only. This material shall not be constructed as an offer, recommendation or solicitation to conclude a transaction. Any prices, projected returns or quotations in this material are indicative and subject to changes without notice. Any forward-looking information is subject to inherent uncertainties and qualifications and is based on numerous assumptions. Such forward looking information is provided for illustrative purposes only and is not intended to serve as and must not be relied on by any investors as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability.
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