Loan purchases
Buying loans from lenders who want to exit, at a discount to the amount owed.
Investor product · Special situations
Distressed credit fund
A fund that buys or refinances loans where the borrower is in difficulty, at a price that reflects the risk, and works to recover value from the security.
Wholesale investors
How to invest.
Apply online. We confirm your wholesale status and provide the offer documents for this fund when available; they set out the full terms, fees and risks.
What it invests in
What it invests in
01
02
Rescue refinancing
New secured loans to borrowers who need time to complete, sell or restructure.
03
Recovery
Working out each position through repayment, refinance or sale of the security.
Income
Where the income comes from.
Returns come from interest and from recoveries above the price paid. Timing is less predictable than for performing loans, and income may be irregular.
Experienced investors who accept higher risk, irregular income and a fixed investment period.
Key terms
How it works.
A summary only. The offer documents set out the full terms, fees and risks.
- VehicleClosed-ended unit trust for wholesale investors.
- DistributionsAs recoveries are made, as set out in the offer documents.
- LiquidityClosed-ended for a set term; no regular redemptions.
- InvestorsWholesale clients only, under section 761G of the Corporations Act 2001 (Cth).
- How to investApply online. We confirm your wholesale status and provide the offer documents when available.
- Minimum investmentSet out in the offer documents.
- Fees and costsSet out in full in the offer documents before you invest.
Risks
Key risks.
- Recoveries may take longer, and be smaller, than expected.
- Legal and enforcement costs can be significant.
- Capital can be lost on individual positions.
- Income and returns are not guaranteed, and you may lose some or all of your capital.
Next step
Apply to invest in this fund.
Applying does not commit you to invest. We confirm your wholesale status before sending the offer documents.
Questions? Email investing@yield.com.au.