Whether you are a wholesale investor exploring private credit or a business owner looking for commercial finance, the team has compiled clear answers to the questions they are asked most often. If yours is not here, book a free call.
Returns, eligibility, capital security and how to get started as a wholesale investor.
Sydney Metro Fund was developed for qualifying wholesale investors who are self-directed, seeking predictable income above retail deposit rates, and comfortable with the illiquid nature of private credit. The ideal investor has a minimum of $200,000 to invest, a medium-term horizon, and is focused on consistent income rather than capital growth.
This typically includes SMSF trustees, self-funded retirees, business owners and professional investors. The fund is not available to retail investors.
View the full investor profile →The minimum investment is $200,000. However, we are able to consider lower amounts on a case by case basis. This threshold reflects the wholesale nature of the fund and ensures meaningful capital deployment within the secured loan portfolio. Full details including subscription terms are in the Information Memorandum.
Download the Information Memorandum →The fund targets a return of RBA Cash Rate plus 6.25% per annum. This is a floating rate: as the Reserve Bank of Australia adjusts the Official Cash Rate, the fund's target return adjusts in line. The premium above the cash rate compensates investors for the illiquidity of private credit and the work of sourcing, assessing and managing the loan book. The fund has been averaging 9.5% return over the last two financial years.
Target returns are not guaranteed. Distributions are funded by interest received from borrowers on the underlying secured loan book. Past performance is not a reliable indicator of future performance.
Distributions are paid quarterly to each investor's nominated bank account. Borrowers pay interest on their loans monthly. The fund accumulates that interest and distributes it to investors each quarter, net of fund expenses. Investors also have the option of reinvesting their earnings to create compounding returns.
Every loan in the fund is secured by a registered first or second mortgage over Australian real property, or by the assets of the business. No loan is advanced until the relevant security is registered. In the event a borrower defaults, the fund holds the right to enforce that security, which may include taking possession of and selling the secured property to recover the outstanding loan balance.
Since inception in 2019, the fund has made over 200 loans and has not lost a dollar of investor capital on any settled loan. Zero legal actions have been taken or received.
No. Every settled loan in the fund's history has been recovered in full since inception in 2019. The fund has made over 200 loans, recorded zero capital losses and taken zero legal actions against any borrower. This reflects the consistency of the fund's conservative lending assessment process.
Past performance is not a reliable indicator of future performance. The Information Memorandum sets out the risk factors in full.
Private credit is lending that takes place outside the traditional banking system. Returns are generated by contractual interest on secured loans rather than by movements in listed asset prices. This means private credit returns have no direct correlation to ASX performance: your quarterly income is driven by loan activity, not what the share market does on any given day.
The trade-off is illiquidity. Your capital is deployed into loans rather than listed assets. In exchange for that illiquidity, the fund targets meaningfully higher returns than retail deposits, with the capital security of registered security over real property on every loan.
Full investor overview →The fund holds registered security over every loan. In the event of a default, the fund has the legal right to enforce that security. This may include taking possession of and selling the secured real property or business assets to recover the outstanding loan balance. The fund's arrears management procedures and default enforcement provisions are documented in full in the Information Memorandum.
In the fund's history since 2019, no legal proceedings have been taken or received, and no investor capital has been lost on any settled loan.
You qualify under Section 761G of the Corporations Act 2001 (Cth) if you meet at least one of the following: net assets of at least $2.5 million excluding your principal place of residence certified by a qualified accountant; gross income of at least $250,000 per annum in each of the previous two financial years; you hold an AFSL or control at least $10 million in financial products; or you are a company or trust with gross assets exceeding $10 million. A free call with the team can help confirm which test applies to you.
Book a free eligibility call →Download the Information Memorandum and review it in full, or book a free 30-minute call with the team. There is no obligation until a subscription agreement is signed. The team will confirm your eligibility, answer all your questions and guide you through the application at whatever pace suits you.
Yes. Sydney Metro Fund is managed by a holder of Australian Financial Services Licence 544582 (AFSL 544582). The fund is available exclusively to wholesale investors as defined under the Corporations Act 2001 (Cth) and operates in compliance with Australian financial services law. The fund's ABN is 83 111 327 747.
Specific questions for self-managed super fund trustees considering a private credit allocation.
SMSFs can invest in managed funds, including private credit funds such as Sydney Metro Fund. Whether an investment in the fund is appropriate for your SMSF depends on your fund's investment strategy, your trustee obligations, your members' circumstances and whether the investment aligns with your SMSF's documented objectives.
The team strongly recommends speaking with a qualified SMSF specialist, financial adviser and taxation adviser before making any investment decision. The fund cannot provide financial or taxation advice.
SMSF members in the pension phase are required to draw minimum pension amounts each year. The fund's quarterly distributions provide a regular, predictable income stream that may assist trustees in meeting these minimum payment obligations. Whether the timing and amount aligns with your specific SMSF pension requirements is a matter for your SMSF specialist and financial adviser to assess.
SMSF trustees have a legal obligation to invest prudently and in accordance with the fund's investment strategy and trust deed. The fund's registered security provides a tangible form of capital protection that some trustees and their advisers may find consistent with their risk management obligations. This is a matter for your SMSF adviser and trustee to assess in the context of your specific fund.
The SMSF sole purpose test requires that a fund be maintained for the sole purpose of providing retirement benefits to members. Investing in a compliant managed investment through an SMSF is generally consistent with this test, but your individual circumstances, trust deed and the structure of the investment need to be assessed by your SMSF specialist before proceeding. The fund cannot provide legal or taxation advice.
The fund requires all investors to qualify as wholesale investors under Section 761G of the Corporations Act 2001 (Cth). An SMSF that controls gross assets exceeding $10 million, or whose trustee qualifies under another wholesale investor test, may be eligible. A brief conversation with the team, along with advice from your SMSF specialist, is the best way to confirm eligibility.
Book a free conversation →Questions about the team, the fund's structure, regulation and how to get in touch.
Sydney Metro Fund is led by Frank Vrachas as Managing Director and Head of Finance, and Ken Mortlock as General Manager. Frank is a Chartered Accountant, Registered Company Auditor and experienced private lender with over 40 years in financial and lending practice. He was instrumental in the formation of non-bank mortgage origination in Australia in the early 1990s. Ken is an experienced business owner and executive who built and led a significant business over 25 years before joining the fund.
Meet the full team →The fund's principal office is at Level 1, 6-10 O'Connell Street, Sydney NSW 2000, in the heart of the Sydney CBD. All lending is focused on the Sydney metropolitan area and New South Wales, markets the team has operated in for over 40 years.
The best way to reach the team is to book a free 30-minute consultation using the booking link on this website, or to send a message through the Contact page. The team responds to all genuine enquiries directly and personally. There is no call centre, no automated responses and no scripts.
An Australian Financial Services Licence (AFSL) is a licence issued by the Australian Securities and Investments Commission (ASIC) that authorises a person or entity to provide financial services in Australia. AFSL 544582 is held by the manager of Sydney Metro Fund, confirming that the fund operates within the Australian financial services regulatory framework under the Corporations Act 2001 (Cth).
Yes. The fund's Information Memorandum sets out the investment strategy, loan criteria, fee structure, risk factors, legal terms and historical performance in full. It is available to qualifying wholesale investors and their advisers on request. The team strongly urges every prospective investor to read the IM in full before making any investment decision, and to seek independent financial and taxation advice.
Download the Information Memorandum →The fund's management team has operated in the Sydney and New South Wales lending market for over 40 years. This geographic focus means the team understands local property values, business conditions, economic cycles and lending risks at a depth that a national or generalised fund cannot replicate. Concentration within a known market is a deliberate risk management decision, not a limitation. The fund does however, consider loans in other regions on a case by case basis.
Book a free 30-minute conversation with the team. There is no obligation, no preparation required and no question that is off-limits. The team has been answering questions about private credit, mortgage lending and the fund for years and will give you a direct, honest answer to whatever you need to know.
Book a free conversation →No question is too basic and no question is off-limits. Book a free 30-minute call with the team. You will get a direct, honest answer and a clear picture of whether the fund is the right fit for your situation.