Investment Process
Balmain employs a vertically integrated business model to implement its investment
strategy. The Balmain Group is the only secured private debt organisation outside of the Big
4 Banks to house the full suite of skills and services required to appropriately
manage risk and return outcomes across the full cycle of a secured private debt
portfolio.
Balmain’s investment process is built upon the construction and active management of
secured private debt portfolios that are granular with respect to size of loan,
sector, location, borrower and loan type. The following in-house activities are
integral to the investment process:
- Portfolio construction and management processes designed to achieve and maintain
the desired asset mix and diversification
- Origination of reliable streams of high-quality secured loan investment opportunities
- Management of multi-dimensional loan pricing (establishment fees, margins, default
fees, early repayment fees, etc.) to ensure alignment and maximize the economic
benefits to investors
- Active credit, repaying and re-lending management to minimize cash levels and to
ensure that all loans mature within the fund term
- Active credit monitoring to predict and proactively manage defaults
- Dedicated asset management and recovery function
- Detailed and transparent reporting and loan management systems.