Sydney, 11 January 2022 – Foresight Analytics rates MaxCap First Mortgage Construction Fund
Foresight Analytics has completed a ratings assessment of the MaxCap First Mortgage Construction Fund (MFMC, the Fund) and has assigned an investment rating of SUPERIOR. The Fund was also assigned a Foresight Product Complexity Indicator of COMPLEX.
The Fund is managed by MaxCap Investment Management Pty Ltd (MaxCap), a subsidiary of MaxCap Group Pty Ltd, an Australian-based specialist commercial real estate (CRE) investment manager. In September 2021, MaxCap, previously 100% owned by its founding partners, Wayne Lasky (MD) and Brae Sokolski (CIO), announced the sale of up to 50% of the company to Apollo Global Management (Apollo). Apollo is a global asset management business with assets under management of ~USD480 billion and a focus on yield/alternative investments. As part of the integration of the two companies, Apollo now has representatives on MaxCap’s Board and key committees. Excluding the banks, MaxCap has one of the largest CRE debt portfolios in Australia.
A SUPERIOR rating reflects the highest level of confidence that the Fund can deliver a risk-adjusted return in line with its investment objectives. A complexity indicator of COMPLEX indicates that the underlying assets require specialist investment skills to acquire and to monitor. In addition, investment in this Fund is effectively illiquid and investors should have a good understanding of the term and characteristics of the distributions from this type of fund.
The MaxCap First Mortgage Construction Fund is an Australian Unregistered Unit Trust that aims to provide investors with a well-diversified portfolio of first mortgage construction loans. By applying effective risk control and mitigation, the manager aims to deliver an annuity-style investment with stable, risk-adjusted periodic income. The Fund is outperforming the target return of 10% p.a. IRR.
Foresight Analytics’ analyst, Maggie Callinan, says “The Superior rating is supported by the highly experienced management team and their well-defined and rigorous investment strategy.” She added, “The Fund is outperforming its target return and there is a high level of confidence that it will continue to deliver in line with its investment objectives.”
The research report is available from Foresight 360.
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Media Contact – Foresight Analytics
Maggie Callinan, Analyst
02 8883 1369
About Foresight Analytics
Foresight Analytics, an independent Sydney based firm, provides investment diligence, data analytics, and advisory solutions to leading investment management companies, superannuation funds and wealth groups across the Asia Pacific. Foresight’s innovative, evidence-based approach blends both human and forensic insights to provide a range of analytical, predictive and market intelligence solutions to investors. Foresight Analytics was founded in 2015 by Jay Kumar, a former executive of Morningstar, Optimix Investment Management, ANZ Wealth & Private Bank and the Reserve Bank of Fiji.
Foresight’s fiduciary solutions include Diligence Services (ESG Diligence, Risk Diligence), Data Analytics and Portfolio Allocation Advice. Foresight’s fund strategy solutions include Data Analytics for asset managers, Fund Strategy Benchmarking Solutions and Strategic Research.