Dorado currently has one fund open to investors, which aims to provide attractive, risk-adjusted returns through a diversified portfolio of first mortgage loans. The liquidity rules for the Dorado First Mortgage Fund are designed to provide flexibility while maintaining control over the fund’s assets. Dorado employs a comprehensive governance framework and advanced process management software to ensure compliance, thorough due diligence, and effective risk management throughout the loan lifecycle.
Dorado Capital’s fund Dorado PE Search Fund No 1 has now closed. It is envisaged during FY2025 that a second Search Fund will be open to ultra-high net worth investors and family offices.
Dorado First Mortgage is an open-ended fund designed for investors to instantly deploy their funds across a diversified portfolio of first mortgage investments without a heavy administration load. The Fund focuses on providing secured first mortgage loans to the Australian property development sector, catering to land settlement, construction, and residual stock loans typically ranging between $2 million and $15 million. The Fund portfolio is carefully selected and managed by Dorado’s experienced origination team, benefitting from our first mortgage track record of full capital return and a dollar-weighted average IRR of 9.4% p.a. Dorado First Mortgage Fund targets a minimum net investor return of the RBA cash rate plus 5.0% from underlying Australian property first mortgage investments.
Some investors wish to create their own bespoke first mortgage investment criteria rather than utilize the Dorado First Mortgage Fund with its standard Mandate criteria. Investing via Dorado First Mortgage Mandates allows investors to select their first mortgage investment criteria such as geographical location, loan-to-value ratio and loan type, thereby determining which first mortgage loans are allocated to them.
Dorado PE Search Fund 2 will be designed to fund around a dozen entrepreneurs across Australia, New Zealand, and the United Kingdom to each identify, acquire, manage, and grow a medium-sized business. The fund raises capital from investors to finance the search for businesses to acquire. Once a suitable target is identified and acquired, the searchers typically take on leadership roles within the company to drive growth and operational improvements, aiming to increase the value of the business for eventual exit. The investors in the search fund, including institutional investors, family offices, and high net worth individual investors, provide not only capital but often mentorship and strategic advice to the searchers throughout the process.
Dorado was approached to facilitate the acquisition of an industrial land lot totalling 16.2ha in size in Environa, New South Wales. We provided the developer a first mortgage land loan with a term of 12 months and representing a 65% LVR, with a 10.00% p.a. net investor return on capital deployed to the loan.
A Western Australian developer approached Dorado for funding to facilitate the development of a 1.83ha vacant land lot into 34 single residential land lots and a 90-place childcare centre in Canningvale, Western Australia. Dorado provided first mortgage funding with a loan term of 12 months and representing a 60% LVR, with a 9.25% p.a. net investor return on capital deployed to the loan.
When seeking funding for a property development project, the key issue for developers has always been the source of funds.
Offices sit at the heart of an organisation, but they can fall behind with the pace of change for the businesses running within them.
