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Why Quality Valuations Matter

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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MacDonald Capital Pty Ltd ACN 642 520 474 (MacDonald Capital) is a corporate authorised representative (CAR) (CAR Number 1292288) of Boutique Capital Pty Ltd ACN 621 697 621 (Boutique Capital) AFSL 508011.

 

Any information or advice is general advice only and has been prepared by MacDonald Capital for individuals identified as wholesale investors for the purposes of providing a financial product or financial service, under Section 761G or Section 761GA of the Corporations Act 2001 (Cth). Any information or advice given does not take into account your particular objectives, financial situation or needs and before acting on the advice, you should consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If any advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument and consult your own professional advisers about legal, tax, financial or other matters relevant to the suitability of this information. 

Any investment(s) summarised are subject to known and unknown risks, some of which are beyond the control of MacDonald Capital and their directors, employees, advisers or agents. MacDonald Capital does not guarantee any particular rate of return or the performance, nor does MacDonald Capital and its directors personally guarantee the repayment of capital or any particular tax treatment. Past performance is not indicative of future performance.

 

All investments carry some level of risk, and there is typically a direct relationship between risk and return. We describe what steps we take to mitigate risk (where possible) in the investment documentation, which must be read prior to investing. It is important to note that risk cannot be mitigated completely.

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