Bespoke lender Gieldan Capital, a joint venture between fixed income dealer FIIG Securities and private equity firm M.H. Carnegie & Co., has concluded its sixth debt facility, taking the total amount of finance arranged by the company to more than $100 million.
Gieldan Capital Managing Director Neil SuttonGielden has previously arranged facilities for the highly anticipated Cairns Aquarium and Archery Capital.
The most recent facility for $16 million was arranged on behalf of an experienced Sydney-based property developer and will be used to support the client’s existing finance facilities to fund a residential development at Kellyville.
The investment will deliver an IRR of over 15% to wholesale investors who include a number of institutions, family offices and high net worth individuals.
Gieldan Capital Managing Director Neil Sutton said the new facility reinforced the company’s view that the property sector would be an important market over coming years for alternative finance providers.
“The opportunity to provide bespoke debt solutions for borrowers and high yield for investors will continue to grow as the major banks put a freeze on the sector,” he said.
“We think there are plenty of high quality developers in the market who are being left high and dry by their banks despite the underlying strong property and secure credit fundamentals of their projects.”
“Our primary goal is to find these opportunities and de-risk the transaction through effective due diligence, credit analysis and strong credit and security controls.”
Mr Sutton said the transaction highlighted the increasing role non-bank lending will play in the property sector in the future.
“We are presented with a range of proposals from right across the economy, but right now the vacuum that has been created by the banks is providing some excellent opportunities,” he said.
“We are not limited by the traditional approach or product-driven financing that banks are constrained by, so Gieldan can develop customised funding solutions that deliver value for all parties.”
FIIG Securities CEO Mark Paton said the transaction marked the growing evolution in private placement debt solutions.
“Quality borrowers and projects which might sometimes struggle to find debt capital are being made available to the growing non-bank debt markets,” Mr Paton said. “This is great for industry and innovation.”
FIIG Securities and M.H. Carnegie & Co joined forces in 2014 to create Gieldan Capital. The business sources high-yield investment opportunities in the debt markets for both FIIG and MH Carnegies broad range of investors.