KeyInvest Partners with Keystone Capital to Spearhead Non-Bank Private Credit Opportunities

12 Jun 2023

South Australian specialist financial services company KeyInvest is set to acquire a 50 percent stake in mortgage fund manager, Keystone Capital, to position the new-look Keystone Capital as a leading non-bank lender and provider of alternative property-backed credit in Australia.

The acquisition, effective June 9, 2023, sees Keystone Capital co-founders Lachlan Perks and Tom Waltham join forces with KeyInvest to broaden the business strategy across Australia.

KeyInvest is a longstanding and reputable APRA-regulated financial services organisation with a proud history dating back to 1878. According to its CEO, Craig Brooke, who will also serve as a director of Keystone Capital, the partnership brings additional expertise in funds management, funds distribution and product development.

He added that the combined strength of the powerful new entity will support those building and developing the future of Australia.

“With the companies enjoying complementary skills across the broad financial services market, the acquisition will allow KeyInvest to combine its tailored financial solutions in funds management, funds distribution, strategic initiatives and management expertise with Keystone Capital Limited’s private credit property-backed strategic skills and reach,” he said.

“The result is an entity that’s seriously equipped to provide its services to a much larger investor base, which will ultimately give Keystone Capital access to more funds, as well as a suite of borrower and investor products to distribute to its national investor, broker and borrower network.

“There have been some great stories across the country in past decades of non-bank lenders stepping into the void where traditional lenders have chosen not to participate, and given Keystone Capital’s national network, it has a strategic edge that allows it to add to those helping to fund the future of Australia.

“KeyInvest, in turn, has for many years enjoyed a reputation for providing capital guaranteed types of investment products to its 50,000 members.

“We are thrilled to be partnering with an organisation like Keystone Capital who, for the past 10 years, has delivered a 100 percent return of capital to its Investors.”

Keystone Capital executive director Tom Waltham joined Lachlan Perks in noting that the company had made more than $800 million in loans across 285 individual facilities and, in the process, provided its members with an attractive risk-adjusted return.

“It is brilliant that, as we celebrate our 10-year anniversary, we can announce a partnership that marks the start of an exciting new chapter,” he said.

“We believe this will significantly increase our ability to grow and scale Keystone’s operations while remaining true to our commitment to provide our members with consistent, high-yielding investment returns and our borrowers with access to private credit.”

About KeyInvest

KeyInvest has been a respected part of the South Australian and, more recently, the national, financial services landscape for 145 years. Its humble beginnings dating back to the Adelaide of 1878 when a group of thinkers came together with the single-minded vision of helping Australians to secure their future.

They established what was known as IOOF-SA and while the company has since developed through many cycles of Australia’s financial services history, its continuity, growth, and survival  as a provider of tailored financial solutions has always been built on strong values and governance.

Its skills in the commercial world and its sense of community as a Mutual is spurred on by a commitment to always act in the best interest of members. The company offers significant expertise in funds management, funds distribution, strategic initiatives and management expertise and is dedicated to working with clients, their advisors and their families to achieve their combined goals.

About Keystone Capital Limited

Keystone Capital Limited is an experienced fund manager and private real estate capital expert established in Adelaide 10 years ago by executive directors Lachlan Perks and Tom Waltham.

The company specialises in the origination of loans secured by mortgages over real property assets and today boasts a team of highly regarded professionals with more than 200 years of combined expertise in property, banking, credit analysis, compliance and funds management.

Keystone Capital operates throughout Australia, with offices in both Adelaide and Sydney, and manages two successful retail funds, the KC Select Income Fund, a contributory mortgage fund established in 2013; and the more recent KC Diversified Income Fund, a pooled mortgage fund established in 2017.

Since inception in 2013, Keystone Capital has funded more than $800 million in loans across 285 individual facilities, providing its members with an attractive risk-adjusted return and maintaining a record of 100 percent return of principal on all exited loans.

The founders sold 50 percent of its holding to financial services company KeyInvest on June 9, 2023. KeyInvest will appoint two representative directors to the board, while Lachlan Perks and Tom Waltham will remain on the board and retain day-to-day management responsibilities within the business. Keystone’s longstanding Independent chairman, Colin Taylor, will continue in that capacity.