Mezzanine Finance

[dreamerr8]

Mezzanine Finance has anyone invested it in before. It's relatively new to the Australian market. It can produce investment returns between 10% - 14% P.A and the interest is paid monthly.
A freind of my invested some money in to it and is receiving $500 a month.
There an interesting article on Mezzanine Finance in a magazine called Wealth Creator on page 43, very interesting. The article was written by a financial planner, who I believe my mate in vested through. It's a property based investment, I believe to do with off the plan.

Has anyone invested in it before

 

[geoffw]

Mezzanine finance has been promoted by Henry Kaye, but that's not the only way people have come to know of it.

It has been discussed in several threads before- for instance http://www.somersoft.com/forums/showthread.php?s=&threadid=3925 and http://www.somersoft.com/forums/showthread.php?s=&threadid=5527 - but a search will show a few more.

 

[Jamie]

Originally posted by dreamerr8
Mezzanine Finance has anyone invested it in before. It's relatively new to the Australian market. It can produce investment returns between 10% - 14% P.A and the interest is paid monthly.
A freind of my invested some money in to it and is receiving $500 a month.
There an interesting article on Mezzanine Finance in a magazine called Wealth Creator on page 43, very interesting. The article was written by a financial planner, who I believe my mate in vested through. It's a property based investment, I believe to do with off the plan.

Has anyone invested in it before

Hi dreamerr8,

Id advise caution in calling "Wealth Creator" a magazine... A 50 page advertisement for the services of NII might be a more appropriate description. The "magazine" is actually published from NIIs headquarters in Melbourne.

Are you asking for information on mezzanine, or are you selling a product?

Jamie

 

[mojo]

Henry is under investigation by ASIC for his mezzanine finance, see the media release here:
Henry Kaye Under Investigation

 

[Jamie]

Hi mojo,

There seems to be a problem with the link, but the report has been posted on here a few times in the last week.

Id also be careful saying

Henry is under investigation by ASIC for his mezzanine finance,

...

The investigation has nothing to do with mezzanine funding itself, but rather that there are claims that NII has been implying that their services are licensed by ASIC, when they are not.

A small distinction, but still relevant.

Jamie

 

[Sim]

Actually mojo - it's the claim that their seminars and schemes have ASIC approval that is getting them in trouble - not their mezzanine finance structures itself.

I've already posted a link to the story (yours didn't work) in this thread

EDIT: yeah - like Jamie said.

 

[asy]

OK...

I don't understand...

You have posted information about Henry Kaye in another post (which ended up in trash, since it was a duplication of someone elses's post) and then you are touting the NII Magazine...

I am confused...

Are you in ANY way afilliated, associated or involved with either Mr Kaye, or any of his companies?

just wondering...

asy

 

[XBenX]

another spam attack ?

 

[NigelW]

Originally posted by dreamerr8
Mezzanine Finance has anyone invested it in before. It's relatively new to the Australian market.

only in the "retail" market. It's used quite often in corporate lending and project finance.

The thing with mez is that you take a higher risk profile for your higher return. Nuthin fer Nuthin

IMHO mez lending is not a good idea for people who aren't "sophisticated investors"

Cheers
N.

 

[Carmel]

As NigelW says, there's nothing new about mezzanine finance. It's been used in the corporate and institutional sectors for a long time. Most medium and large developers will be thoroughly aware of mezzanine finance, and its uses.

Yes, it's very useful to them. Yes, there's a place for it. BUT those higher returns absolutely definitely do NOT come 'without risk'. Contrary to some of the information being promoted by HK and his graduates... it definitely isn't risk free and it definitely isn't something that unsophisticated investors should enter into lightly. I know that HK has recently moved into promoting various schemes involving mezzanine finance, including a nifty little deal of getting together groups in order to sideskirt the ASIC regulations... (saw the presentation, read the doco... had it checked out... all my alarm bells went off).

My suggestion: definitely caveat emptor, big time.

And yes, calling 'Wealth Creator' a magazine... no, it isn't, it's a 50-page glossy advert (the latest edition, darn it, they have me on their mailing list) is bigger and glossier than ever before. Wow... just think of the revenues that are involved to put out that 'for free'...

A freind of my invested some money in to it and is receiving $500 a month.

Really? Listen... send me your email address and I'll forward on to you some lovely email opportunities I've been getting from someone in Zambia (or was it Uganda)? They say there are MILLIONS of dollars sitting in bank accounts over there, and you could be one of the lucky, lucky people who could benefit!!

 

[Lissy]

My best opportunities seem to come from Nigeria....

 

[XBenX]

Originally posted by Carmel


Really? Listen... send me your email address and I'll forward on to you some lovely email opportunities I've been getting from someone in Zambia (or was it Uganda)? They say there are MILLIONS of dollars sitting in bank accounts over there, and you could be one of the lucky, lucky people who could benefit!!

hehe, have you ever returned an email to one of those groups ?

its quite amusing (just dont be too fond of the email address)

its great fun