At Capstone Funds, we believe that strong investments start with accurate, reliable valuations. A great Loan-to-Value Ratio (LVR) is only as good as the valuation behind it—so we make sure our valuations reflect true market conditions, not just optimistic projections.
By working with high-quality, independent valuers on an ‘as is’ basis, we ensure our investors are making decisions based on real, risk-adjusted data—not guesswork.
The Capstone Difference: Why Valuation Quality Matters
A strong valuation is the foundation of a well-structured loan. Here’s why we prioritise accuracy:
✅ We use expert valuers with proven track records. Our valuers provide independent, well-researched reports—no shortcuts, no bias.
✅ We base lending on ‘as is’ market value. We don’t rely on future numbers or Gross Realisation Value (GRV).
✅ We ensure realistic LVRs. A valuation should reflect the real risk, giving investors confidence that their loan is well-secured.
✅ We mitigate risk with robust due diligence. Every valuation is assessed alongside market trends, borrower strength, and asset liquidity.
Why ‘As Is’ Valuations Matter
One of the biggest traps in private credit can be based on future expected values rather than current reality. This is particularly relevant for construction loans, where projects are often valued based on their projected Gross Realisation Value (GRV).
At Capstone, we ensure have no major construction exposure and ensure that:
✔️ Valuations are grounded in today’s numbers, not just future potential.
✔️ Investors have confidence that LVRs reflect real security, not assumptions.
Confidence in Every Investment
A bad valuation makes LVRs meaningless. If the underlying valuation isn’t accurate, the risk profile of an investment can be misleading. At Capstone, we only use high-quality valuers on an “as-is” basis giving confidence in the foundation of our investments.
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