By Kevin Said | Director and Chief Investment Officer | TierONE Capital
The concerns being raised about private credit deserve a proper response. Investors are entitled to understand where their money is invested, how loans are valued, what fees are charged and what happens when a borrower cannot repay. ASIC’s scrutiny of governance, valuations and disclosure reinforces the importance of those questions.[1]
At TierONE Capital, we welcome that scrutiny. It gives investors a reason to look closely at the people managing their money and the controls behind each investment.
Our approach is built around three things: diversification, transparency and experience. These matter when a loan is first approved, while it is being managed and, particularly, when circumstances become difficult.
A pool with clear limits
Our 12 Month Term Income Investment gives investors exposure to a pool of property-backed loans. Their investment is spread across the portfolio, rather than depending on the outcome of one selected mortgage.
Pooling alone is not enough. A fund can hold several loans and still have too much exposure to one borrower or one type of lending. The limits governing the pool are just as important as the number of loans it holds.
The investment mandate sets a maximum 65% loan-to-value ratio, measured on the basis specified in the investment documents. It also limits exposure to any single borrower to 20% of funds under management and development and construction lending to 50%. These limits define how the portfolio can be built and managed.
Independent valuations from external panel valuers support our lending assessments. They inform our decisions, but they do not remove the need to question assumptions or assess how a loan will be repaid. Property values can fall, and a valuation is not a guarantee of sale proceeds.
Diversification helps limit the effect of an individual loan performing poorly. It does not remove the risk of losses across the portfolio, particularly when borrowers face similar market pressures.
People who remain involved
Our team brings decades of banking, credit, property and risk-management experience. That experience is supported by credit assessment, documented approvals, ongoing monitoring and compliance processes.
For construction lending, independent quantity surveyors assess progress and the cost to complete. Our Property Services Team provides additional project oversight. These processes help us assess whether further funding is justified and identify issues requiring action.
Our responsibility continues after funds are advanced. We monitor the borrower, the security and the repayment strategy throughout the loan. If a loan becomes impaired, we assess the available recovery options, their cost and the likely outcome for investors.
Clear reporting and shared exposure
Transparency means explaining the difficult developments as well as the positive ones. Investors need to know when a timetable changes, when a loan is impaired and when an earlier expectation of repayment needs to be revised.
Our internal credit and compliance processes are supported by external financial audits, and independent custody through Perpetual Corporate Trust Limited. Those functions have different roles: an audit does not guarantee loan performance, and custody does not protect against a borrower defaulting.
We also co-invest alongside our investors on the same investment terms. Our invested capital shares in the same risks and returns. That alignment matters, alongside the need to identify, disclose and manage conflicts of interest.
Confidence that can be examined
In an unsettled market, confidence needs a basis that investors can examine: the team’s experience, its lending and recovery record, the portfolio’s composition and the quality of its reporting.
That is the basis on which we invite investors to consider TierONE Capital and our 12 Month Term Income Investment. We are accountable for how we assess loans, apply the fund’s limits, monitor risk and communicate with investors throughout the relationship.
We welcome questions about how we do that.
[1] ASIC, “ASIC puts private credit on notice, ahead of 30 June valuations and reporting”, 18 June 2026.
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