Du Val investor had ‘played around’ investing before staking $150,000

An investor in the Du Val Mortgage Fund limited partnership (in statutory administration) now doubts she qualified as an eligible investor under the wholesale investment regime and regrets convincing a relative to certifying her before she committed a significant portion of her savings.

“One hundred and fifty thousand dollars ... I could use that now,” Anita, an Auckland healthcare worker whose real name BusinessDesk has agreed to withhold, said.

She shared her experience in an interview for The Du Val Story.

Eligibility as a wholesale investor requires $5 million in assets in each of two years or a minimum investment of $750,000 in a scheme under the regime.

Anita said she had approached Du Val Capital Partners in 2021 on hearing from a friend that the fund offered 10% quarterly returns to wholesale investors.

She recollects that a Du Val salesperson told her the qualifying threshold was $250,000. However, if she had a financial adviser, they could also certify her as a wholesale investor to satisfy the regime requirements.

“They want sophisticated investors who know what sort of risk you’re getting into, and I was neither,” Anita told BusinessDesk.

On her first visit to Du Val, Anita recalls very briefly meeting founder and co-owner Kenyon Clarke in passing, but Clarke told BusinessDesk he had no knowledge of her situation and had only met investors at events, not to bring them on board.

“If you’re going to make an investment, then you should read the documentation properly and take advice on that,” Clarke said.

“You’re told to go and seek professional advice. You seek that professional advice. Your professional adviser confirms that you’re a wholesale investor, and you choose to make the investment. People should be grownups.”

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