Orens Capital Private Credit Fund: Early Redemption in a Warming Market

As Australia’s property and credit markets transition through a pause in rate cuts, select development projects are beginning to move ahead of plan. One of Orens Capital’s private credit funds is a clear example of how a carefully structured private credit strategy can benefit from these conditions while maintaining a strong focus on risk.

Fund at a Glance

Term: Originally structured as 17 months (June 2024 – November 2025)
Facility size: $6 million
Annual return: approximately 18% p.a. net of fees, before tax

The fund was designed as a tailored funding solution for a large PSP project in one of Victoria’s western growth corridors, providing the borrower with the capital and flexibility required to execute its business plan while protecting investor capital.

A Warming Market, Despite a Pause in Rate Cuts

During the life of the fund, the market environment gradually warmed, even as the broader interest-rate cycle paused recently. This created a constructive backdrop for well-located, well-executed projects, but it also called for discipline in structuring and risk management.

Orens Capital’s approach is to look through short-term sentiment and focus on the fundamental drivers of each project: planning progress, demand dynamics, delivery risk and capital structure.

Early Repayment and Fund Redemption

From the outset, Orens acted as a solution partner rather than a passive lender. The team brought in-depth development experience, active monitoring and conservative structuring to support the borrower across key milestones.

As the project progressed, sales and delivery tracked ahead of expectations. This allowed the borrower to pay off the facility earlier than the initially anticipated term end. In line with the fund documents and planned exit strategy, the facility was repaid in full ahead of schedule, triggering an early redemption of the Fund.

For investors, this outcome delivered an approximate annual return of 18% p.a. (net of fees, before tax), in line with the fund’s target and realised over a shorter-than-expected investment period.

Safeguarding and Nurturing Investor Wealth

It reflects Orens Capital’s broader philosophy:

Deliberate investment selection – focusing on projects where we have conviction in the land fundamentals, sponsor capability and delivery pathway.
Robust structuring and risk controls – including covenants, security and monitoring frameworks designed to protect investor capital in changing market conditions.
Active engagement with borrowers – supporting them with insights, oversight and flexibility where appropriate, rather than simply providing a static facility.

Through this approach, Orens seeks to safeguard and nurture investor wealth while balancing attractive return targets with prudent risk management.

Looking Ahead

Orens Capital is continuing to build a pipeline of strategies for wholesale investors seeking institutional-grade exposure to Australian property and development via structured private credit and equity solutions.

If you are a wholesale investor and would like to learn more about upcoming opportunities, please contact the Orens Capital team for a confidential discussion.

Disclaimer: This blog post in its entirety is prepared by Orens Capital Pty Ltd ACN 668 843 623 corporate authorised representative (number 001304386) of SILC Fiduciary Solutions Pty Ltd ACN 638 984 602 (AFS licence number 522145) (Investment Manager). The authority of the Investment Manager is limited to general advice and dealing by arranging services to wholesale clients relating to the Geelong Guardian Fund and Creamery Delta Fund (collectively, the Funds ) only. The images used are for illustrative purposes only. Past performance is not a reliable indicator of future performance. This document represents the opinions of the Investment Manager and is the product of internal research and does not in any way constitute an invitation or offer in relation to any financial product. The strategies and opinions expressed herein are based on current market conditions and are subject to change without notice. No reliance may be placed on this document for any purpose, nor used for the purpose of making a decision about a financial product or transaction. The projections provided in this marketing material are based on the Investment Manager’s assumptions and analysis. These projections are forward-looking statements and are not guarantees of future performance. They are provided for informational purposes only. The actual results may differ significantly from the projections due to various risks and uncertainties, including but not limited to market conditions, economic factors, and changes in regulatory environments.