How investments are secured
Every private credit investment we bring to market is structured around the underlying property. Here is how security works, and who holds it.
The structure, in one picture
The security is held by an independent Security Trustee for the benefit of investors.
What security means
Security may include first- or second-ranking legal charges, depending on the transaction. The exact security and ranking applicable to each investment are set out in the relevant investment documentation.
Debt generally ranks ahead of equity within the relevant capital structure, subject to the specific security documents and any senior-ranking creditors.
An independent Security Trustee
M&G Trustee Company Limited acts as Security Trustee and holds the relevant security in accordance with the security documentation for the benefit of investors.
What we look at before every investment
- 01The propertyWhat is being financed
- 02The borrowerWho is contractually responsible for repayment
- 03The securityWhat security supports the investment
- 04The rankingWhere the investment sits within the capital structure
- 05Return & termThe interest arrangements and investment term
- 06The exitThe expected source of repayment
Where the details are
Interest terms, investment term, security and ranking are set out for each opportunity in the investment documentation, available to registered investors in the Investor Portal.
Important
Security reduces risk but does not remove it. Enforcing security can take time and cost money, and the value recovered may be less than the amount owed. Your capital is at risk. Please read our Risk Disclosure.