A Fund Built for Stability, Security & Strong Returns delivering a 10% p.a. passive income with no investor fees, secured by income-generating childcare assets in a recession-resistant sector. With institutional-grade risk management, low volatility, and full regulatory compliance, consistent monthly returns, and a clear exit strategy for investors.
Independently rated “VERY STRONG” by Foresight Analytics, the Finexia Childcare Income Fund leverages powerful industry tailwinds for stable, high-yield returns.
Finexia Securities Limited (ASX: FNX) – A Listed Financial Institution Specialising in Private Credit Regulated under AFSL No. 485760 (ACN 608 667 778), Finexia brings institutional-grade investment expertise to the childcare sector.
Dear Esteemed Investor,
IIf you're looking for a smarter, proven way to maximise returns and unlock higher income from childcare investments, this opportunity is built for you.
Here's why:
Over the past 24 months, our team has allocated over $58 million to experienced childcare operators to open expand and improve there childcare centres, allowing them to gain a better foothold in the childcare industry with remarkable success.
Here's the evidence:
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And we have done this with multiple loans Australia wide with more than 20 plus different childcare businesses.
Using this investment stragtey we have:
A 58 Million dollar loan book
Loans in SA - NSW - WA - VIC- QLD
5 Different types of loans - Leasehold Childcare Business Established - Leasehold Going Concern Trade Up - Investment - Leasehold Going Concern Established - Fit out playscape loans
Helping quality childcare operators bridge the gap in funding to trade up to bank finance.
Having loaned over 58 million we have learned a lot about the early learning industry
We know success, and what it looks like and where, new centres will thrive and flourish
With solid risk management process, no impairments, every redemption request granted and 50 plus years of lending experience our team have been able to deliver results.
We partner with successful operators, and our living is built on lending money.
With traditional income investments no longer delivering the returns they once did,
it's time to pivot our focus in a new direction. The evolving financial landscape demands a reassessment of where we allocate our resources, urging us to explore alternative avenues that promise stable growth potential and higher yields.
This shift is not merely a reaction to the underperformance of conventional investment options; it's a strategic move towards diversifying portfolios and capitalising on emerging opportunities that align with the current economic trends and future prospects.
Investors are now encouraged to look beyond the traditional, considering investments in sectors that have shown resilience in recessions and innovation in the face of economic shifts. Whether it's technology, renewable energy, or new financial instruments like digital assets, the goal is to identify areas with the potential for significant appreciation and income generation.
Embracing private credit requires a strategic shift—one that prioritises adaptability, informed decision-making, and a deep understanding of evolving market dynamics. By leveraging the stability and risk-adjusted returns of private credit, investors can navigate economic uncertainty with confidence, securing sustainable, income-generating opportunities that align with long-term financial objectives.
From its very beginning, the Finexia Childcare Income Fund has prioritised the interests of its investors.
If Finexia was to give you an investment opportunity which had the perfect combination of benefits what would it be?
- Government supported
- Strong demand
- Stable industry
- Segmented market share
- No fees for investors
- Emerging market
- External fund administrator (AMAL Asset Management)
- External custodian (Perpetual corporate Trust limited)
- Audited by Mazars (QLD) Pty. Ltd
The numbers are below and they'll shock you see below...
Childcare is one of the few political policies both sides of government agree on and support
Spending continues to increase in both parties political messages. Looking more and more like a medicare based system for the childcare industry.
14.7 Billion dollar Industry where 10.6bn is government supplied and delivered privately
More than 70% of the industry revenue is government funded delivered through the private sector.
A bluechip investment
"Childcare services in Australia" in the "Blue Chip" quadrant. This suggests that the childcare industry is considered to have strong revenue growth above GDP growth and low volatility, indicating it is a stable industry with positive growth prospects. The industry is seen as a reliable investment or market sector.
A generation of childcare
Female labor participation and dual working parents are at or close to all time highs we are truely seeing a generation of kids raised in Australian childcare centres
0-4 year olds population is Australia's largest growing
Australia’s population is growing, particularly in major cities, further straining childcare availability with the growth of the 0-5 range one of the strongest.
Price isn’t the primary concern of parents when choosing a childcare centre
In a market scenario where price isn’t the primary concern, the dynamics often shift towards what's known as an "operator's market." This refers to a market condition where the operational capabilities, strategic decisions, and value-added services of a company become more crucial than just the pricing of its services.
Segmented market share
A market with many small companies offers Finexia diversity in opportunities and the chance for higher profits by encouraging competition and innovation.
300 + centres new centres needed each year
Australia represents a promising prospect for investors due to the potential for substantial returns driven by the country's growing demand for childcare services
The biggest issue right now in the Childcare Industry for childcare operators is finance.
This is where savvy investors like you can benfit by filling the gap in funding.
The Fund offers secured loans exclusively to experienced operators of childcare businesses with multiple childcare centres in strategically positioned locations across Australia. Loans are specifically for leasehold childcare centres. Security for these loans will consist of a registered first mortgage over the leasehold childcare centres and personal guarantees.
The loans are designed to provide experienced and well-capitalised operators of childcare centres with a loan facility that allows them to open and then trade until the occupancy and cash flows are stable and sufficient for it to reach an appropriate valuation. At this point, the loan would generally be refinanced by a traditional bank financier. The product is designed to replicate and largely replace loans that were traditionally provided by major Australian Banks.
Comparing your options for a Childcare Investment
If your to invest in Australian childcare there are a few different options.
Direct Investment
Buy a Childcare Centre 25% yield
Buy a childcare Property 5% yield
ASX Listed Equities in Childcare
$1 Investment in G8 Education would equal $0.44 between 2018 and 2024
$1 Investment in Mayfield Education would equal $1.22 between 2018 and 2024
Real Estate Investment Trust
$1 Investment in Arena REIT would equal $1.26 between 2018 and 2024
Finexia Childcare Income Fund
Currently the fund is paying 10% p.a Paid monthly, Additionally, in paying out the target return to investors and which is fixed at a specified rate above the RBA Cash Rate, the Manager effectively implements a quasi-first-loss equity note structure akin to that which exists in securitised notes.
10% pa paid monthly
Floating rate on both sides of the fund of 5.56% above the RBA cash rate this protects the investor, and keep the monthly returns consistent.
Supply/demand dynamic in the Australian press
The Australian childcare sector is experiencing significant growth, driven by investor confidence and government support, making it an attractive avenue for investment. Childcare centres have become hotspots for private investors, showcasing robust demand due to long-term leases and the sector's resilience.
Frequent Questions and Answers
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Fund Name
Finexia Childcare Income Fund (ARSN 658 543 625)
Responsible Entity
Finexia Securities Limited (ACN 608 667 778, AFSL 485760)
Investment Manager
Creative Capital Group Pty Ltd (ACN 623 557 808)
Open to all Investors
Wholesale & Retail Investors
Distributions
Monthly in arrears
Minimum initial investment
$5,000
Minimum additional investment
$1,000
Disclaimer
*The investment return is fixed at 5.65% above the prevailing RBA cash rate which is currently 4.35% at the time of publication (return of 10% pa). All investments carry degrees of risk. This product is not appropriate for everyone. You should obtain a copy of the Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) relating to the product and consider them before making any decision to invest in the product. These disclosures can be obtained from registering your contact details on above. Forecast returns and distributions are subject to several assumptions that are detailed in the PDS. Returns are calculated as a margin over the RBA cash rate. Further details on redemptions can be found in the PDS.
The PDS and TMD are issued by Finexia Securities Limited (ABN 61 608 667 778, AFSL 485760) under the Finexia Childcare Income Fund (ARSN 658 543 625).
Finexia provides general advice only. All advice is of a general nature only and must not in any way be construed or relied upon as legal, financial or personal advice. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any investor. The decision to invest or trade in financial products and the trading method selected is a personal decision and involves an inherent level of risk. You must undertake your own investigations and obtain independent advice in relation to the suitability of an investment in a financial product for your personal circumstances.