How an SMSF investor found stability, clarity and dependable income with private credit.
Meet Michelle
As the trustee of her $2 million SMSF, Michelle had built her retirement wealth through property and equities. In her 50s, she wanted to prepare her fund for the next phase of life with more stability, less volatility and clearer governance.
She works closely with her accountant and adviser. But like many trustees balancing work, family and long-term planning, she wanted reliable income without additional complexity.
The challenge
Michelle’s SMSF had the following investment objectives:
- Preserve capital
- Deliver above-inflation returns
- Support future pension-phase income
- Maintain clean, audit-ready reporting.
Over time, managing multiple asset classes, market fluctuations and property responsibilities had become increasingly time-consuming for Michelle. She wanted an investment that provided structured monthly income within a certain risk / return profile.
When comparing other alternative investments, Michelle decided that, for her personally,
- Term deposits were secure, but the returns were too low.
- Equities were currently performing well but she was increasingly concerned about elevated evaluations and potential volatility.
- Property yields were being squeezed and required considerable ongoing management, as well as additional costs.
Michelle was looking for a solution that delivered stability, efficiency and reliable income without additional complexity.
The solution
When Michelle explored the Capspace Private Debt Fund, she was drawn to:
- Lending secured by Australian bricks and mortar property
- The ability to capitalise returns and then switch to monthly income distributions
- Detailed reporting
- 60-day redemption terms
- A transparent and conservative lending framework.
After reviewing the fund’s track record and governance, Michelle allocated a significant portion of her SMSF as part of a long-term diversification strategy.
The outcome
Private credit now plays a significant role in Michelle’s SMSF. She values:
- Consistent monthly income that smooths cash flow
- Diversification away from equity volatility and property management
- Audit-ready reporting, reducing the administrative load
- Security, with loans backed by real assets and conservative LVRs
- Simplicity, with no tenants, no maintenance and no daily decisions required.
*This case study reflects an actual investor experience, shared with adjustments to protect client privacy. Past performance is not a reliable indicator of future results.
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Why investors choose Capspace.
- Returns. Target returns of 8% – 10% p.a. achieved since inception.
- Property security. Loans secured against Australian bricks-and-mortar real property.
- 3 layers of security. Real property, business assets, and directors’ guarantees for a multi-layer security approach.
- Liquidity. 60-day liquidity window for redemptions.
- Distributions. Choice of monthly distributions or capital reinvestment for compounding.
- Transparency. Loans secured by predominantly A-grade residential assets, independently reviewed by Performance Property Advisory.
- Commitment. Active portfolio management, disciplined credit processes, and a long-term focus on capital preservation.
- Community. Supporting Australian businesses and delivering social impact through initiatives such as founding charity Most Important Meal.
Interested in how private credit could fit into your portfolio? Have a chat with Sean O’Neil, Business Development Manager – Investments, and subscribe to our monthly investor newsletter to receive insights, updates, and opportunities straight to your inbox.
