First-Loss Protection
10%+
Subordinated capital ranks behind every investor dollar.
A smarter way to earn
Monthly income with a focus on capital preservation. Secured against a diversified portfolio of underlying assets, with first-loss protection.
Strategy Overview
How the
strategy works
Eldium focuses on senior secured, asset-backed lending to a carefully selected portfolio of non-bank originators.
01
Asset-Backed Exposure
Security over diversified portfolios of underlying loans. Recourse across the full asset base of each counterparty in the event of distress.
02
Short Duration Lending
Facilities are structured with relatively short maturities, secured against diversified pools of relatively short maturity loans, enabling liquidity and portfolio management.
03
Diversified Portfolios
The platform is diversified across various types of lenders and secured against highly diversified pools of underlying loans.
04
Cash-Generative Assets
Income-generating portfolios underpin facility performance. Monthly cash flows from underlying borrowers service the platform's lending returns directly.
Originator Selection
What we look for
in an originator
Every originator on the Eldium platform has passed a rigorous multi-factor credit assessment. We are selective by design, the pipeline is large, the portfolio is not.
01
Established Track Record
We back lenders with a demonstrable history of originating and managing credit through multiple market conditions. Every originator is assessed against Eldium's proprietary Shadow Rating model before a term sheet is issued.
02
Asset-Backed Security
We typically require first-ranking security over the originator's loan portfolio and the whole business. Unsecured or thinly-secured structures are declined regardless of yield.
03
Management Quality & Alignment
We assess management depth, skin in the game, and the quality of the originator's own underwriting. Every originator is required to hold a subordinated first-loss tranche in their own facility, their capital is first to absorb any loss.
04
Technology & Data Transparency
We require direct access to originator loan-management systems and bank feeds before a facility is extended. If an originator can't give us visibility of their book, we don't lend.
Credit Policy
What we say no to
Discipline is defined as much by what you decline as what you approve. These are structural exclusions, not guidelines, not exceptions on a case-by-case basis.
Property Construction
Zero exposure
Property Development
Zero exposure
Highly Leveraged Loans
Declined
US-Style Private Equity Credit
Not our market
Single-Asset Concentration
Declined
Opaque Reporting / No API Access
Declined
The above reflects the platform's structural investment parameters as at the date of this publication. Full credit policy is set out in the Information Memorandum.
Structural Protection
Engineered to
protect capital
Four structural pillars sit underneath every facility we extend. None are negotiable, that's the point.
01
Diversification
Across borrowers and assets
Concentration limits are enforced at the portfolio level and at the originator level. No single borrower or asset class represents excessive portfolio exposure.
02
Leverage
Conservative advance rates
Advance rates set conservatively relative to assessed portfolio value. LVR covenants restrict drawdown in periods of deterioration, providing automatic downside buffering at the facility level.
03
Structure
Senior secured
The Fund focuses on senior secured lending with security over the counterparty's loan portfolio and, typically, the whole business.
04
Protection
First-loss equity buffer
The minimum 10% first-loss feature provides capital and income protection to investors.