Melbourne-based fintech MezFi has unveiled a blockchain-powered investment platform aimed at offering Australian and New Zealand retail investors exposure to the global mezzanine finance market. The platform leverages Ethereum’s blockchain technology to facilitate the purchase of Digital Fund Tokens (DFTs), which represent fractional stakes in high-yield property development deals. MezFi’s initiative seeks to democratize access to mezzanine finance, a domain traditionally reserved for institutional investors and high-net-worth individuals.
Investment Opportunities with MezFi Fund 1
The new platform provides investors the opportunity to acquire DFTs, priced at AU$5,000 per unit, within MezFi Fund 1, an ASIC-registered managed investment scheme. Investors can purchase these tokens using either Australian dollars or the USDC cryptocurrency. MezFi forecasts annual returns for the fund ranging from 9% to 13% (pre-tax and net of fees), with a management fee of 2.2% annually.
The company has positioned this offering as a gateway for retail investors to participate in property finance deals across Australia and international markets. MezFi emphasizes that its use of blockchain technology enhances the transparency and efficiency of the investment process, while regulatory oversight by ASIC ensures investor protection.
Expanding Access to Mezzanine Finance
Mezzanine finance, which combines aspects of debt and equity, typically allows lenders to convert debt into an equity stake if a borrower defaults. MezFi acknowledges that this form of financing carries higher risks compared to senior bank debt but compensates with the potential for more substantial returns. Investors in MezFi’s platform will hold a subordinate position to senior lenders, meaning their claims are paid only after those of the primary lenders in the event of a default.
The platform operates within a four-month investment window referred to as the “mint window.” During this period, capital raised from DFT sales will be allocated by MezFi’s investment team to property development projects both in Australia and internationally.
Merging Blockchain and Traditional Finance
The fintech underscores its dual focus on innovation and regulatory compliance, highlighting that MezFi Fund 1 blends blockchain’s decentralization with the regulatory assurances provided by ASIC. MezFi asserts that it is bringing together the best of traditional finance (TradFi) and Web3 technologies, offering a transparent and accessible entry point for investors with diverse backgrounds.
Jerome Dadon, MezFi’s founder and CEO, has characterized the platform as an innovative step toward leveling the playing field for retail investors. He points out that MezFi combines financial expertise with cutting-edge technology to open up investment opportunities that were previously inaccessible to the average investor.
NFTs Linked to Investments
In addition to financial returns, DFT holders receive a unique non-fungible token (NFT) that is permanently linked to their investment and stored on the blockchain. This feature aims to further enhance investor engagement by combining tangible financial assets with digital art, reinforcing the fusion of traditional and modern investment approaches.
Founded in 2022, MezFi aspires to provide a new, flexible gateway for investors keen to explore Australia’s dynamic property sector while benefiting from the transparency and innovation that blockchain technology offers. Through its platform, MezFi envisions becoming a key player in reshaping the mezzanine finance landscape for retail investors.