The Gemi Fund
The Gemi Fund (the Fund) was established in April 2019 to provide investors with a diversified exposure to a portfolio of Loans secured predominantly by first ranking mortgages over real estate located within Australia. The Fund targets an annualised return of 10.5% (net of fees and expenses of the Fund).
The Fund offers 3 key benefits:
- Single point access to a diversified portfolio of short-term property backed debt investments originated by Gemi, predominately with first mortgage security
- Target net returns of 10.5% p.a. with monthly cash distributions and liquidity
- Strong alignment of interests between Gemi and investors, with $5 million first loss invested by Gemi’s Principals
The Loans are predominantly senior debt, which means they will have a registered first mortgage secured by the real estate and rank in priority to other creditors. Loans are made to approved Sponsors in the following instances:
- As a senior lender with first ranking security to the Sponsor.
- Up to 20% of the Fund may be secured by a 2nd ranking registered mortgage or caveat.
Loans are predominantly used to fund real estate purchases, refinances and business purposes.
The principals of Gemi Investments seeded the Fund in April 2019 with $5 million in Manager Units, which provides Investors with a level of protection against capital losses as the Manager Units assume a first loss position in the Fund. The Manager Units are not able to be redeemed until all of the ordinary units in the Fund have been redeemed.
Units in the Fund are issued on a weekly basis with a minimum investment amount of $25,000. Distributions are paid monthly within 7 days of the end of the month and Investors are able to withdraw from the Fund on a monthly basis. The Fund is a wholesale unregistered managed investment scheme.
Gemi Asset Management Pty Ltd is the trustee of the Fund and Gemi Investments Pty Ltd is responsible for the origination and management of the underlying loans.
The Fund is only available to Australian resident wholesale clients within the meaning of section 761G of the Corporations Act 2001. Wholesale clients can obtain a copy of the Information Memorandum by downloading it from the right hand side of this page. Investors should review the Fund’s Information Memorandum in its entirety before deciding to make an application. If, after reading the Information Memorandum, you are unclear in relation to any matter or if you have any questions about the Fund, you should contact your accounting, tax, financial or other professional advisor.