About
The Balmain Opportunity Trust (BOT) is designed to allow investors the opportunity to participate in asset classes that are usually the preserve of institutional investors. These asset classes range from simple commercial mortgages through to structured corporate debt. The common theme is that these exposures are secured by real assets.
Balmain Opportunity Trust is managed by the Balmain Group (Balmain), Australia’s largest and longest established commercial private credit manager. Launched in 1979, Balmain has focussed on commercial real estate lending and has arranged over $40bn in commercial loans for both our borrowers and our investors.
BOT was specifically established by the Trustee to meet the needs of high net worth and self-managed super fund investors who seek investment exposures and sources of income from asset classes outside of those traditionally available to private investors. BOT is especially well suited to investor’s seeking inflation hedged investments where capital maintenance and monthly income are both available. Investments can be made at any time and funds invested can be withdrawn in full twice a year. Investors may also withdraw up to 10% of their investment at any time during any financial year.
BOT invests in a range of debt-related investments as described in its Information Memorandum.
Types of Investments
The investments offered by Balmain Opportunity Trust have been selected, credit accepted, funded and are managed by the Balmain Group.
MORTGAGE INVESTMENTS
- loans secured by real estate
- senior loans and mezzanine loans are permitted
- investment and construction loans are permitted
- loan terms are not restricted but currently average 15 months
- loans can be sold down to other lenders including parties related to Balmain
Lending Programmes
- these investments are usually the domain of institutional investors and are not typically available to the private investors
- typically comprise junior/ subordinated tranches or equity in funding trust structures that support lending programmes
- the types of Lending Programmes currently supported by BOT include car finance programmes, consumer lending programmes, residential lending programmes and floor-plan lending programmes
- risk-adjusted return profiles compare favourably to mortgage investments and we are continually endeavoring to increase exposure to this investment class when opportunities arise (infrequently)
Special Opportunities
- these investments are, again, usually the domain of institutional investors and are not available to private investors
- they typically comprise:
- junior and equity tranches in acquisitions of undercapitalised lending programmes;
- junior and equity tranches in portfolio’s of non-performing loans
- senior corporate loans
- participation in syndicated, secured corporate loans (i.e. where BOT may be one of several investors in a larger corporate loan)
- the types industries currently supported by BOT’s investment in Special Opportunities include equipment finance, regional data centres, consumer finance and near prime residential mortgages
- risk-adjusted return profiles compare favourably to mortgage investments and we are continually endeavoring to increase exposure to this investment class when opportunities arise (also infrequently)
Unit Classes
There are three separate classes of Units on issue, Founder, Class A and Eagle Series.
Founder units are those issued to the original founding investors in BOT (as at March 2018). All new investors since that date are Class A investors.
You are required to be an existing eligible unitholder in BOT to join the Eagle Series. Each class of unit is governed by an Information memorandum which can be found below.
Only Wholesale Clients may invest
This website is not a product disclosure statement. Only wholesale clients (see section 761G of the Corporations Act 2001 (Cth)) may invest in the Balmain Opportunity Trust including any of the unit classes.
