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Investment Products
Our Prudential Criteria
Surefire Capital is dedicated to creating superior risk-adjusted returns for our Investors. We understand that in order to achieve this goal, an accurate assessment of the risk-return profile of the fund’s underlying assets is essential. For this reason, we do not establish a Surefire Fund until we have achieved a thorough investigation, analysis and understanding of the relevant underlying assets.
Before offering investment in a new Surefire Fund, we make sure that we are confident that the risk involved in the underlying loan(s) and related security interest is appropriate relative to the expected return on investment. To achieve this, we ensure that risk is properly assessed and quantified. This process involves investigating and analysing:
• The credit background of the borrower
• The business experience of the borrower
• The purpose for which funding is sought
• Any business strategy relevant to the purpose for which the loan is sought
• How cash will be generated to service debt repayments owing under the loan
• The value of the security interest
- A current valuation report will be obtained from an independent valuer
• The Loan-to-value ratio (“LVR”)
- LVR is equal to the Loan Amount divided by the market value of the security, usually real estate. Note that for loans secured by second mortgage, the LVR is equal to the sum of the first and second secured amounts divided by the market value of the security.
- We have strict guidelines on LVR limits so as to always provide a capital buffer which in the event of default, can be used to compensate Investors.
• Insurance of Security Interest (where relevant)
- We will require that any buildings and improvements forming part of the secured property are insured at all times by the Borrower
- Surefire keeps a copy of the policy and the certificate of currency
- Not applicable when security interest is vacant land (or buildings to be removed as part of project)
• Personal or corporate guarantees
• Other relevant security interests
• Any correlation between different risks applying to the Fund
• Any other factors deemed relevant
