MaxCap Group Company Profile

Background

Overview

Founded in 2007, MaxCap Group is a leading Australasian commercial real estate (CRE) investment manager headquartered in Melbourne, Australia. The company specializes in providing innovative debt and equity solutions across the CRE sector, catering to a diverse clientele that includes institutional investors, family offices, and high-net-worth individuals. With a commitment to delivering superior risk-adjusted returns, MaxCap has established itself as a trusted partner in the real estate investment landscape.

Mission and Vision

MaxCap's mission is to create lasting value for investors and borrowers by offering tailored investment solutions that align with their unique objectives and risk profiles. The company's vision is to be the preeminent real estate financier in Australia, recognized for its integrity, innovation, and excellence in investment management.

Industry Significance

As a market leader, MaxCap has played a pivotal role in shaping the non-bank real estate lending space in Australasia. The company's extensive track record and robust platform have positioned it as a preferred investment manager for many of Australia's and the world's largest institutional limited partners (LPs).

Key Strategic Focus

Core Objectives

• Capital Preservation: Maintaining a pristine track record of capital preservation across all investments.

• Risk-Adjusted Returns: Delivering outstanding risk-adjusted returns through disciplined investment strategies.

• Client-Centric Solutions: Tailoring bespoke investment solutions to meet each investor's unique objectives and risk appetite.

Areas of Specialization

• Commercial Real Estate Debt: Offering a comprehensive suite of institutional-grade products, including whole loans, senior and junior debt, and structured finance alternatives.

• Direct Real Estate Investments: Engaging in opportunistic, value-add, core, and core-plus investment opportunities across various sectors such as residential, office, industrial, hotel, student accommodation, and mixed-use developments.

Key Technologies Utilized

MaxCap employs a robust and proactive approach to credit and risk management, leveraging advanced analytics and proprietary methodologies to assess and mitigate risks throughout the investment lifecycle.

Primary Markets Targeted

The company focuses on the Australian and New Zealand markets, capitalizing on opportunities arising from structural dislocations within the commercial real estate sector where traditional banks have scaled back lending.

Financials and Funding

Funding History

In September 2021, clients managed by Apollo Global Management, Inc. entered into a definitive agreement to acquire up to a 50% equity stake in MaxCap Group. This strategic investment aimed to bolster MaxCap's access to capital and strengthen its ability to deliver innovative lending solutions.

Utilization of Capital

The capital infusion from Apollo's clients has been directed towards accelerating MaxCap's growth, enhancing its investment platform, and expanding its presence in the Australasian market.

Pipeline Development

Key Projects

• The Rothschild, Rosebery: A residential development comprising 176 apartments with ground-floor retail space, located approximately 6 km south of Sydney's CBD.

• 88 Laurens Street, North Melbourne: A 12-level commercial office complex situated 1.5 km north of Melbourne's CBD, offering modern office accommodations.

• Mondrian, Burleigh Heads: A luxury residential and hotel development featuring 84 apartments and a 208-guest room Mondrian-branded hotel, linked by a three-level podium with communal amenities.

Development Stages and Timelines

These projects are at various stages of development, with anticipated completion dates ranging from late 2024 to 2025.

Technological Platform and Innovation

Proprietary Technologies

MaxCap has developed a vertically integrated institutional-grade platform that encompasses the entire investment lifecycle, from origination and structuring to underwriting, ongoing management, and reporting.

Scientific Methodologies

The company employs advanced risk assessment models and stress-testing scenarios to ensure a conservative approach to structuring investments, thereby maximizing downside protection and providing clear exit strategies.

Leadership Team

Executive Profiles

• Wayne Lasky: Co-Founder and Managing Director, responsible for strategic direction and overall management.

• Brae Sokolski: Co-Founder and Chief Investment Officer, overseeing investment strategies and portfolio management.

• Robert Hattersley: Group Head of Capital, leading capital raising and investor relations.

• Bruce Wan: Head of Research, directing market analysis and research initiatives.

• Ben Klein: Head of Private Capital, managing private capital investments and client relationships.

Key Contributions

The leadership team brings a wealth of experience in real estate investment, finance, and risk management, contributing to MaxCap's reputation for excellence and innovation in the industry.

Leadership Changes

In 2021, following the strategic partnership with Apollo Global Management, Wayne Lasky and Brae Sokolski continued to lead the company, retaining their respective roles and shareholdings.

Competitor Profile

Market Insights and Dynamics

The Australasian commercial real estate debt market has experienced significant growth, driven by structural dislocations where traditional banks have reduced lending activities. This has created opportunities for non-bank lenders like MaxCap to fill the void and offer tailored financing solutions.

Competitor Analysis

Key competitors in the Australian CRE debt market include:

• Balmain NB: A commercial real estate debt provider with a revenue of approximately $29.9 million and 60 employees.

• Redilend: A CRE financier with a revenue of around $5.2 million and 61 employees.

• Global Capital Commercial: A commercial property finance firm generating approximately $5.7 million in revenue with 29 employees.

• Salter Brothers: An investment management firm focusing on real estate, with a revenue of about $5.2 million and 45 employees.

• Barwon Investment Partners: