Press Release
Sydney, 6th June 2023 – Foresight Analytics Upgrades Payton Capital’s Operational Due Diligence Rating to ‘Very Strong’.
Foresight Analytics has assigned a ‘VERY STRONG’ Manager Operational Due Diligence (ODD) Rating to Melbourne based Payton Capital Ltd.
Melbourne-based Payton Capital Ltd (Payton) specialises in the provision of wholesale debt to businesses and real estate developers, and investment products for wholesale investors, SMSFs, family offices and institutional investors. Payton was originally founded in 1966 as an accounting practice and has become a reputable funds management business with scale. Payton underwent a restructure to become an investment manager in 2010 and entered the Australian private real estate debt market. Payton manages two investment vehicles – Payton Select Investment Fund and the Payton Pooled Investment Fund. The firm has funded over $2 billion of loans since inception and currently has $1.03 billion in assets under management.
Foresight Analytics’ Manager ODD Rating assesses the capacity of an asset manager to effectively undertake its defined role of managing the operational risks relating to a pool of financial or physical assets. The overall ODD Rating is underpinned by 7 risk factors – Ownership & Strategy, Management talent, Governance, Risk & Compliance, Asset & Data security, Systems & Technology and Financial agility.
Payton’s ‘VERY STRONG’ ranking has been driven by the firm’s track record of consistently delivering target returns, its highly experienced management team, and its continued investment to support scalability and growth in the business.
The current assessment is enhanced by Payton’s consistent investment management and financial performance since the first managed fund was launched in 2018, which in turn has allowed it to weather the COVID-19 pandemic event and more recent challenges in the construction industry. Payton has consistently delivered target returns for its investments and has experienced steady growth in assets under management (AUM) and funds under management (FUM) since it was established.
Foresight Analytics has assigned a ‘VERY STRONG’ Operational Due Diligence (ODD) Rating to Payton Capital Limited (Payton). This has been driven by Payton’s track record of consistently delivering target returns, its highly experienced management team, and its investment to support scalability and growth in the business. This assessment is underpinned by Payton’s consistent investment management and financial performance since the first managed fund was launched in 2018, which has allowed it to weather the COVID-19 pandemic event and more recent challenges in the construction industry. Payton has consistently delivered target returns for its investments and has experienced steady growth in assets under management (AUM) and funds under management (FUM) since it was established.
Foresight Analytics’ analyst, Rodney Lay, said “Payton enjoys a ‘VERY STRONG’ outlook in terms of opportunities for growth within the Australian CRE lending sector due to the withdrawal of the banks from the domestic CRE lending market and an increase in capital inflows. To take advantage of the opportunities for non-bank lenders, the firm has increased its resource deployment in business development, marketing, deal origination and other specialist support areas”.
The full report can be accessed through our F360 platform at https://www.foresight-analytics.com/
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The full research report is available on the Foresight 360 Digital platform. The platform can be accessed via www.foresight–analytics.com.
About Foresight Analytics’ Manager Operational Due Diligence Rating (ODD Rating)
An Operational Due Diligence Rating assesses the capacity of an operating entity, special-purpose vehicle, or asset (collectively “operating party”) to effectively undertake its defined role of managing the operational risks relating to a pool of financial or physical assets. The ability of an operating party to carry out its role, be it in a superior, adequate, or poor manner, ultimately will have a bearing on the performance of the pool of assets. The overall ODD Ratings assigned by Foresight Analytics is underpinned by 7 risk factors – Ownership & Strategy, Management talent, Governance, Risk & Compliance, Asset & Data security, Systems & Technology and Financial agility.
The assessment covers operational responsibilities and oversight undertaken for a pool of assets retained by the owner, or alternatively a pool of assets that underlie a debt issue or managed fund. The assessment addresses how much the operating party enhances or potentially detracts from the ability of the asset pool to pay interest and principal on a specific security as and when due, or the fund’s ability to distribute income according to the Product Disclosure Statement (PDS). It should be noted that operational risks generally exist in addition to credit, market, and liquidity risks.
Foresight Analytics Manager Operational Due Diligence Rating (ODD Rating) Scale & Definitions
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ODD Rating Scale |
Manager ODD Rating Definitions |
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Superior |
A rating of ‘Superior’ reflects the superior capability of an operating party to perform its operational role and assist the issuer or fund in meeting financial obligations in a timely manner. An operating party’s superior capacity is supported by many superior and reliable operational abilities and strong financial status. |
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Very Strong |
An assessment of ‘Very Strong’ reflects the very strong capability of an operating party to perform its operational role and assist the issuer or fund in meeting financial obligations in a timely manner. An operating party’s very strong capacity is supported by many very strong and reliable operational abilities and some superior qualities. |
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Strong |
A rating of ‘Strong’ reflects the strong capability of an operational party to perform its operational role and assist the issuer or fund in meeting financial obligations in a timely manner. An operating party’s strong capacity is supported by many strong and reliable operational abilities and some very strong qualities. |
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Adequate |
A rating of ‘Adequate’ reflects the adequate capability of an operational party to perform its operational role and assist the issuer or fund in meeting financial obligations in a timely manner. An operating party adequate capacity will support its role, but its resilience to expected operational or financial changes is limited. |
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Weak |
A rating of ‘Weak’ reflects the weak capability of an operational party to perform its operational role and assist the issuer or fund in meeting financial obligations in a timely manner. The operating party’s weak capacity displays material, operational, financial or risk management and compliance deficiencies. |
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Failure to Perform |
Assigned when a party contracted to perform an operational role has failed to meet the required standards and terms and conditions of the contract. |
Media Contact – Foresight Analytics
Rodney Lay, Analyst
Suite 208, 33 Lexington Drive, Bella Vista, 2153, NSW
Telephone: 02 8883 1369
Email: rodney@foresight-analytics.com
Web: www.foresight-analytics.com
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 includes Diligence Services (Investment, Operational, ESG & Risk Diligence), Data Analytics and Asset Consulting. Foresight’s fund strategy solutions include Data Analytics for asset managers, Fund Strategy Benchmarking Solutions and Strategic Research.
For more information on our capabilities, please visit our website on www.foresight-analytics.com and social media platforms via LinkedIn, Facebook or Twitter.
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