The decision to launch Cornerstone reflects something we have heard consistently from investors and advisers: not everyone wants the same risk and return profile, and many investors have a clear preference for the most conservative position in the capital stack.

Cornerstone is a pooled, diversified fund that will invest exclusively in Ark senior mortgages — first-ranking positions, or A-notes, within our facilities. In structure it is similar to our Bedrock Fund, but where Bedrock holds a blend of first mortgage and subordinated positions, Cornerstone holds senior positions only. It is deliberately the most conservative fund in our stable, and the returns will reflect that. We make no apology for this. Some investors are willing to accept a lower return in exchange for lower risk, and we believe that preference deserves a purpose-built solution rather than a compromise.

Just as importantly, Cornerstone will be open to retail investors under the ASIC definition. Our evolution as a manager — in scale, in governance, and in operational depth — means we can now extend our offering beyond the wholesale market with confidence. Broadening access to private real estate credit has been a long-held ambition, and Cornerstone is the vehicle through which we deliver it.

Cornerstone is designed for investors who want three things: a pooled structure, genuine diversification across multiple loans, and exposure limited strictly to first mortgage positions. It will suit those who value capital preservation and income stability over yield maximisation — investors who want to participate in private real estate credit, but at the most defensive end of the spectrum.

For advisers, Cornerstone provides a clean, easily understood building block: a diversified portfolio of senior secured loans, managed with the same discipline and rigour that underpins everything we do at Ark.

The reason I am most excited about this launch is what it means for our investors as a whole. With Cornerstone in place, Ark now offers a complete suite of investment options within private real estate credit:

The Cornerstone Fund for pooled, diversified exposure to first mortgages only. The Ark Summit High Yield Fund for those seeking higher returns through subordinated mortgage positions. The Ark Bedrock Fund for a diversified portfolio across both first and subordinated positions. And for investors who prefer to select individual mortgage syndicates directly, the Ark Wholesale Mortgage Fund remains available.

Investors now have genuine choice across the debt stack, and can position themselves precisely according to their individual risk and return appetite. That completeness matters. It means a conversation with Ark no longer starts with “does this fund fit me?” but rather ‘which of these funds fits me best?’

Whichever pooled fund an investor chooses, the underlying Ark investment strategy flows through all of them. We continue to focus on land development. We continue to concentrate on the residential and industrial sectors, where significant demographic tailwinds are driving sustained demand. And we continue to direct our lending towards the growth states of Queensland, South Australia and Western Australia, where population growth and economic momentum are strongest.

Cornerstone does not represent a change in what we do — it represents a new way for investors to access what we have always done. The same origination discipline, the same credit standards, the same hands-on management of every facility. The only difference is where in the capital stack the fund sits.

Launching a retail fund eleven years after we began with one is a milestone that means a great deal to me personally. It reflects how far Ark has come — from a single fund to a manager with approximately $750 million in funds under management, four offices, and a team I am genuinely proud of. More importantly, it reflects our belief that private real estate credit, done properly, deserves a place in more Australian portfolios, not fewer.