This comes at a time when investors are increasingly seeking cash and non-bank alternatives driven by low interest rates and resulting low investment returns.
Range of investment opportunities
Mayfair 101’s founder and managing director James Mawhinney said low interest rates were prompting Australians to seek non-bank investment alternatives, and the company’s two investment vehicles - IPO Wealth and Mayfair Platinum - fitted squarely in this area.
“We have found that IPO Wealth has attracted interest in Australia because investors have typically struggled to access the types of investment opportunities that Mayfair 101 group has access to.”
IPO Wealth to date has surpassed $115 million raised since it was established in March 2017 and interest continues to grow.
Mawhinney, an investment finance professional who has more than 17 years' executive leadership at digital, online and investment companies, said the Mayfair Platinum complemented IPO Wealth and both would benefit.
Mayfair 101 founder and managing director James Mawhinney.
The new vehicle had been introduced in response to customer demand.
“With the broadening of our offering and resulting slight restructure in the business, we expect the growth to continue, potentially at a greater rate.
“We are now able to service a bigger audience and build on the success Mayfair 101 has had with IPO Wealth by listening to investor demands,” he said.
Lifestyles also impacted by low rates
“It's not just their returns that are struggling, but their lifestyles are also suffering as a result of low rates if they are reliant on interest income to live off.
“We have a lot of investors who say that we have actually changed their lives for the better,” he said.
91% of respondents who have written a review about IPO Wealth have provided a 5-star rating, prompting Mawhinney to state: “To be dealing with a sizeable and growing customer base and maintaining a high level of customer satisfaction is testament to our team’s customer service focus.”
He said what Mayfair Platinum will do is cater to a fuller suite of investment requirements including cash alternatives and growth products over time
“Security is key”
“Companies like us come out with investment products providing the opportunity to earn regular income, and whilst the level of security isn’t the same as investing with a bank, investors are increasingly comfortable enough to make the shift given Mayfair 101’s investment strategy.
“Mayfair Platinum provides investors exclusive access to investment opportunities often reserved for family offices, investment banks, stockbrokers, who generally get access to deals first and then take the best for themselves, which is a real problem in the industry.
“We are giving investors the opportunity to gain exposure to companies we are already significant shareholders in and which we have typically curated or developed the business over time.”
The MD said IPO Wealth had always paid distributions and redemptions in full and had always paid its full target returns to investors.
“Our track record has proven that it is a solid investment opportunity for those that are seeking a higher yield.”
“Invest alongside us”
Mayfair Platinum will offer investors the ability to gain exposure to companies that the group works closely with, which it claims makes outcomes more manageable, predictable and profitable.
At the very least, Mayfair 101 has generally been intimately involved with these companies for at least a couple of years and has a significant amount of its money invested in them.
“Our investors now have the opportunity to invest alongside us,” Mawhinney said.
“We are structuring this so that it is a very exclusive opportunity for our investors because you can't buy into these companies elsewhere.
“Investors know we have to make that investment work because we have our own money in it and our own resources that have been applied to it.
“Mayfair Platinum is exclusively available to wholesale investors in Australia but given our group has assets in 11 countries and in diversified sectors, they get exposure to quality assets internationally.
Building on flagship product – IPO Wealth
“The group wouldn’t be in a position to broaden its base unless we had a flagship product in Australia that we have proven the demand for in IPO Wealth, resulting in building a substantial client base.
“We now have the ability for more investors to participate directly in investing in the success of the Mayfair 101 group where previously the only entry point in Australia was IPO Wealth.”
“A leaner, more cost-effective structure”
He concluded: “People need to remember that when they are putting money into a bank deposit, they are effectively lending money to a bank.
“The banks are clever with their marketing by calling this a deposit, to make you think that your money just sits there. It doesn't sit there - it gets leveraged, it gets invested, it gets used and the banks continue to make huge profits.
“What we are doing is no different except that we have a different structure, a different architecture to achieve effectively the same outcome in principle.
“We have a leaner, more cost-effective structure to do that and that's why we are able to pay the rates that we are paying. Like all investing it is not without its risks, however, we tightly manage these and are focused on aligning our interests with our investors.”