Monday, 25 September 2017 Sydney
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Alternative Investments in Australian SME’s with Global Reach::

Accrutus Capital, a Sydney based small-scale capital raising intermediary is paving the way for small-to-medium Australian enterprises to raise debt capital through SME Bonds. Offering investors opportunities available from the Australian private sector in highly profitable unlisted public companies, to provide a wider choice of alternative investments.

In the current low interest rate environment, high-net-worth or professional investors can continue to diversify across a wide range of alternative investments such as high-yield SME Bonds, domestic and international shares, direct and indirect property investment. Unlisted public company Issuers offer a higher return to compensate investors for their illiquid SME Bonds, and with some offers, Bonds can be converted to equity, or include a profit distribution at maturity.

Accrutus Capital Finance and Investment Director Joanne Russell says, “investors should seek both shares and fixed income across various asset classes to diversify, choosing the right mix in your portfolio is crucial based on your time to retirement, tolerance for risk, and expected investment returns, investing across borders also widens your investment options”. Russell highlights why investors should look at unlisted public company SME Bonds;


  • Income – offer the highest and most reliable fixed income streams
  • Diversification – for better risk adjusted returns and across opportunistic asset classes
  • Protection of principal – debt ranks higher than shares and Bonds can be secured against assets

 

Types of alternative Investment offering non-traditional fixed income from 8% per annum

  • FinTech and Financial Services
  • Real Estate and Property Development
  • Manufacturing and Transport
  • Telecommunications and Technology
  • Agriculture and Resources

 

FEATURED ACCRUTUS CAPITAL ALTERNATIVE INVESTMENT

 

Global Alternative Lender

 

The alternative lending industry has seen rapid growth over the last decade with innovative lending platforms disrupting traditional banking channels. Small business owners have benefited from faster and more flexible ways to access SME finance. The Alternative Finance Industry (AltFi) includes marketplace and balance sheet lending models, mobile payments, digital wealth management and distributed ledger technology. Increased interest from investors seeking a new asset class have fueled capital flowing into this sector.

Since 2010, the company has funded over $100 million in unsecured loans to Australian SMEs. The company has developed its own method of assessing risk and has implemented a disciplined underwriting culture that drives below-industry average loss rates throughout the credit cycle. As a global leader in Alternative Business Finance the company achieved 50% 3-year growth earning its place on the Inc. 5000 List and Winning Best Business Lender – Digital Offering at the prestigious 2016 Australian Business Banking Awards. To support its continues expansion in Australia and the UK, the company is seeking to raise $5 million.

 

Property Development

 

Investors participate in small, medium and large-scale, top-tier real estate investments such as high rise, land acquisition and sub-division, and luxury townhouse developments in major Australian locations from Brisbane to Perth, with a proven development manager and Tier 1 builder. Invest as a Co-developer, JV equity partner or a private Bond investor from 12 months to 3 years. Investors gain access to off-market real estate opportunities coupled with market expertise and professional management. Investment opportunities from $100,000 to $5 million.

 

Building Construction Materials

 

The company has developed a full range of specially engineered ‘fit for purpose’ products that have been fully tested and approved under all aspects of ASTM C1185/86, accredited by CodeMark and under ICC for use in all areas of building and construction including Interior and exterior and wet area linings, in America, Australia, New Zealand, Malaysia and Sweden. A-grade non-combustible product that is fire-proof and resistance to mould and termites, 100% recyclable, free from asbestos, toxins and heavy metals.

A recent announcement by the Victorian government that “The Master Builders Association of Victoria will participate in a stakeholder reference group for the government’s new Victorian Cladding Taskforce, which investigates the extent of non-compliant cladding on buildings in the state”. Timely, after the devastating epic fire at Grenfell Tower in London earlier this year. The company is seeking $2 million to fill the demand in Australia for its building products.

 

SME Bonds are a new spin on Corporate Bonds

 

Russell says “SMSF’s are a huge potential investor pool for SME Bonds”. They are open to sophisticated investors with assets in excess of $2.5 million or annual income of over $250,000, with a minimum investment is $100,000, and other professional funds investing in the private sector. Terms range from 12 months to 3 years. Paying a fixed income usually monthly in arrears until maturity. Coupon rates start from 8% to 20% and in some cases the Bond can be converted to equity. Russell says, “compare these returns with your current bank deposit rates which averaged 3.1% over the last 10 years”.

Since the GFC, small to medium business have embraced the emerging AltFI industry as alternatives to bank financing. Since 2010, Germany addressed this problem by creating five stock exchange special Bond platforms to serve the SME Bond market to raise debt capital. A report by Michael Oppermann, Partner, Head of Financial Accounting and Advisory Services, Ernst and Young, explains ‘Corporate Financing via Bonds for SMEs’ is the solution to Solvency II and BASEL III, and it’s decreasing exposure to financing small business globally.

In Australia companies can raise capital via a compliant SME Bond Offer under Section 708 of the Corporations Act 2001; as a small-scale offer which significantly reduces the high cost of preparing a corporate Bond issue and listing on a national stock exchange.

 

To enquire about Accrutus Capital raising division and these SME Bond opportunities open for investment, call us +61 2 9006 1327 or email finance@accrutus.com.au

Accrutus Capital (the Corporate Advisor) provides a business introduction service in accordance with ASIC Class Order CO [02/0273] (as of 24 March 2017, replaced by (Repeal and Transitional) Instrument 2017/186) which provides exemptions to the disclosure requirements under section 708 of the Corporations Act.

This press release does not constitute an offer of, or an invitation by or on behalf of, Accrutus Capital, the Corporate Adviser, or the Company to subscribe for, or purchase, any SME Bond Notes.