• The Corporations Act 2001(Cth) defines a wholesale investor as a client who:
  
  
  • meets the minimum asset ($2.5 million of net assets) test; OR
  • meets the income ($250,000 of gross income for the last two financial years) test; OR
  • invests at least $500,000; OR
• You must provide a complete and signed Accountant’s Certificate form at the time you seek to invest in the fund, confirming that you qualify as a wholesale investor.
• If you are investing from outside Australia an equivalent certificate, letter or conformation by an accountant or financial adviser is required

The Propel Mortgage Fund is denominated in Australian dollars. Contributions in other currencies will be converted to Australian dollars at the best wholesale exchange rate available on the day. The fund is not hedged and therefore any exchange rate movement between the contribution (incoming) and distributions or withdrawals (outgoing) will be reflected in the outgoing payment.

A minimum investment of $500,000 is required.

• Follow these three steps to invest in the Veritasium Propel Mortgage Fund:
  
  
  • Carefully review the offer described in the Information Memorandum and obtain professional advice to evaluate whether the offer meets your financial needs and circumstances.
  • Complete the application form provided in the Information Memorandum.
  • Submit your completed application form, along with the required supporting documentation and investment amount.
• Once your investment is received and accepted, income will begin accruing from the day of investment. It is important to note that the specific details and terms of the investment, including income generation, will be outlined in the Information Memorandum and the other relevant investment documentation.

Investors can distributions are paid quarterly where:

• If Cash distributions are selected, these are paid to an investor-nominated bank account in Australian dollars. The bank account must be able to accept Australian dollars, which will be transmitted at the best wholesale exchange rate available on the day, or
• If the Distribution Reinvestment Plan (DRP) is selected, these payments are converted into a new issue of units. This option effectively compounds. Investors may opt-out of the DRP at any time to receive cash distributions when available.

In recent years, stricter banking regulations requiring banks to maintain substantial capital reserves have led to challenges and increased costs for banks.

As a result, banks have limited their lending, especially in the commercial debt sector, making it difficult for them to provide funding for property transactions, even to existing clients. The current economic climate has tightened these constraints, resulting in highly restrictive lending terms or a complete halt in lending to new clients.

This situation has created an opportunity for private funders such as the Veritasium Propel Mortgage Fund to offer debt facilities to borrowers with greater flexibility and speed of funding with similar lower risk to bank lending.

• A tried-and-tested policy for default management and debt recovery is in place. This policy’s primary premise is to put the interests of our investors above all others. The portfolio provides continuing monitoring of investments.
• The default procedure begins with cooperating with the borrower to reach an acceptable resolution. The recovery team shall begin legal procedures on behalf of the investors, in line with the loan security held, if a reasonable resolution cannot be reached within a reasonable timeframe and will proceed with the sale of the collateral if necessary.

Rhodium Equity as manager is authorised representative 001296786 of CODA Asset Management Pty Ltd AFSL 389315.