Lending to developers we already know.
We're a small New Zealand private credit firm. We write first-mortgage loans to mid-market property developers in NZ, funded by a network of wholesale and sophisticated investors we work with directly. This page describes the firm and its strategy. It is not an offer of any financial product.
Senior secured credit, on ground we can walk.
What we do
- Write first-mortgage construction, residual stock and bridging facilities for mid-market NZ developers.
- Underwrite every loan ourselves, against an independent QS and a registered valuation.
- Hold loans to maturity. We don't trade and we don't on-sell credit risk.
- Work with borrowers we already know, or who come in through people we trust.
- Lend in Auckland, Wellington, Christchurch, Tauranga and Queenstown — places we can drive to.
What we don't do
- Lend on land banks, hotels, motels, or anything that hasn't yet got resource consent.
- Lend outside New Zealand. We don't think we'd be good at it.
- Run a publicly-marketed fund. Investor conversations happen one-to-one, by introduction.
- Value our own loans. An independent valuer does it, every quarter.
- Promise returns. Past performance is not a reliable indicator of future performance.
Four things worth knowing.
Relationship
We lend to people we've worked with before.
Most of our facilities are written for sponsors on their second, third or tenth project with us or with someone at the firm in a previous job. New borrowers come in through someone we trust and pass three rounds of credit before we'll write a term sheet. It slows the book down. We think it's worth it.
Narrow
One asset class. One country.
We don't lend offshore, we don't do equipment finance, and we don't have a “diversification” story dressed up to look conservative. Our concentration is honest and it's in the open. The investors we work with want exactly this exposure or they don't invest with us.
Senior
Six layers of protection on every loan.
First-mortgage on the project land, GSA on the borrower entity, sponsor guarantees we've actually stressed, step-in rights on the build, an independent QS every month, pre-sale and pre-lease covenants tested at every draw. Detailed on the Approach page.
Small
We're not asset-gathering.
The capacity of the strategy is genuinely limited by the size of our developer network and the time we can spend on each facility. We talk a lot of would-be investors out of investing, and we mean it when we say capacity is closed. Anyone telling you they can take unlimited capital and still be careful is selling you something.
On both sides of the desk.
The borrowers
Mid-market NZ property developers. Most have done several projects. Many have worked with us at previous firms. Project sizes between $3m and $40m, in metros and coastal corridors where the demand and the bank pullback both make sense.
We've turned down more deals than we've written. We say no in 1–2 days when the answer is going to be no. We say "yes if" when the deal can be made to work. We don't string anyone along.
The investors
Wholesale and sophisticated investors in our network. Family offices, HNW individuals, and a small number of institutions. We invite people into the conversation; we don't market.
If you're already in our network you'll know how to reach us. If you're a wholesale or sophisticated investor and you've come to us by referral, the Contact page has an introduction form. We'll respond personally inside a business day.
This page describes a firm. It does not offer a financial product.
Arxium Capital does not currently offer a publicly-marketed managed investment scheme. We work with a small group of wholesale and sophisticated investors on a one-to-one basis, by introduction.
If you are an existing investor or have been referred to us by someone in our network, please contact us directly. If you are unsure whether you qualify as a wholesale or sophisticated investor under the laws of your jurisdiction, you should speak to a licensed financial adviser before contacting us.
Nothing on this page is, or is intended to be, an offer of financial products, a recommendation, financial advice, or a solicitation. Past performance is not a reliable indicator of future performance.