Investment Strategy

Capital First, Returns Follow

Our investment philosophy is designed to protect capital through rigorous credit selection, disciplined structuring, and active portfolio management

A Structural Funding Gap

Regulatory capital requirements and legacy banking practices have created a persistent funding gap in Australia's lower middle-market — Colter Bay is proactively unlocking the opportunity to bridge this funding gap.

$130B+

Addressable Market

Corporate lending in Australia's private debt market

55%

SMEs Prefer Non-Bank

Of SMEs favour non-bank lending, reflecting shifting borrower preferences

72%

Major Bank Market Share

Down from 77% in 2015 — non-bank lenders filling the gap

Learn more about Colter Bay Capital in the press.

Market data is indicative and sourced from public regulatory data, industry reports, and independent research. See Information Memorandum for detailed market analysis.

A Methodical Approach to Private Credit

Each investment decision assesses all material factors that may impact a Company's financial condition and is guided by a direct recurring question: "What could go wrong?"

Capital preservation is our priority — structured through senior positions, robust security packages, and prudent financial parameters.

Attractive returns come from investing in an underserved market with discipline.

Senior Secured

90-95% senior / first-ranking secured by collateral.

Prudent Parameters

Covenants designed to target suitable leverage, gearing and interest coverage.

Active Monitoring

Ongoing company management engagement with frequent financial reporting.

Lower Middle-Market Focus

We target established Australian businesses in the lower middle market—companies with established operating histories.

Demonstrated profitability and stable cash flows
Experienced management with sector expertise
Tangible assets or strong operating businesses
Defined exit strategy or refinancing pathway
Clear business purpose for the financing
$3M-$20M
Target EBITDA
> $15M
Enterprise Value
$5M-$20M
Loan Investment Size
< 60%
Target Gearing
> 3.00x
Target Interest Coverage
90-95%
Senior Secured

Sector Agnostic — Preferred Industries:

Essential Services

Education, social, utilities, engineering, trades, and mission-critical service providers

Professional Services

Financial services, consulting, and specialised advisory

Technology-Enabled Services

IT solutions, data infrastructure, and business-critical service providers

Healthcare Services

Allied health providers, aged care, healthcare service platforms, and medical device distributors

Manufacturing & Industrial

Niche industrial production, equipment servicing, and industrial activities

Food & Agriculture

Supply chain, processing, and distribution

Rigorous Credit Analysis

Every lending opportunity undergoes comprehensive due diligence with independent Investment Committee review.

1

Origination & Screening

Opportunities sourced through Colter Bay Capital's extensive network. Initial screening against investment criteria.

2

Due Diligence

Financial modelling (including stress testing), company and industry assessment, site visits, third-party verification.

3

Investment Committee

Independent review with key issues analysed. Investment decision.

4

Documentation & Settlement

Legal documentation, security registration, funding upon conditions precedent.

Ongoing

Active Portfolio Management

Continuous monitoring and engagement with management to seek suitable performance trajectory.

Regular financial reporting
Covenant compliance monitoring
Management engagement

Explore the Fund

Explore the full fund terms, fee structure, and request our Information Memorandum. Wholesale investor performance data available on the investor portal.