How Bowery’s Due Diligence Process Works

In the private lending and investment space, due diligence is not just a regulatory requirement — it’s the foundation for trust, operational success, and investor confidence. 

At Bowery, the due diligence process is designed to go beyond surface-level checks, focusing on a comprehensive, multi-layered evaluation of every transaction. Our due diligence philosophy is simple: while no process can guarantee against unforeseen risks, every effort is made to mitigate them. By prioritising diligence and accountability, Bowery delivers peace of mind for borrowers and investors alike.

Here’s a look at how our due diligence goes deeper.

 

Firstly, we have a dedicated due diligence team.

Bowery assigns a specialised team to manage the due diligence process. This team, comprising our experienced professionals (namely Marrk Murray, Ali Abbass, John Nave, Darb Peng, Sal Khaled and Sharif Ghraib), conducts in-depth research, gathers necessary documentation, and analyses every aspect of the transaction. With nearly one-third of the Bowery team focused on due diligence, the company prioritises thorough evaluations.

Bowery uses its internal credit policy as a guiding framework for evaluating opportunities, ensuring consistency and adhering to best practices. If exceptions arise, these are meticulously analysed and reviewed for potential impact and may be referred to the board for final approval.

 

We welcome professional and experienced borrowers only.

The Australian property market is flush with borrowers of all kinds for a wide range of projects across the country. After a high level review and the initial conversations with an interested borrower or broker, only a handful of property developers and projects are found to be suited to Bowery’s lending criteria. These prospective borrowers are invited to submit an application which marks the beginning of a formal due diligence process.

 

We evaluate the full context – property security, exit & borrowers / guarantors.

Bowery lends only for commercial purposes and against real estate, ensuring that every loan is backed and secured by tangible assets. 

Whatever the asset type, the value needs to be carefully and prudently assessed. As such, each property undergoes a detailed valuation by independent, recognised valuers. Among the valuation partners we work with are Charter Keck Cramer, M3, Egans and Bertacco. If a special purpose property is the security, we always use valuers with specific relevant industry experience.

Beyond property value, Bowery scrutinises the sponsors (those behind the borrowing entity). This includes assessing their financial history, business experience, and ability to deliver on the proposed project if it is a development and of course, exit. 

All the above are key factors in Bowery’s risk management approach. But we don’t stop there.

 

We further scrutinise construction loans.

Our assessments on passive loans focus on the property value, location, and LVR. For construction loans, we go beyond surface-level checks to analyse details such as project feasibility, timelines, and cost accuracy. Experienced team members and independent quantity surveyors engaged by Bowery further validate these elements to ensure accuracy, accountability and fundamental viability of the project. Bowery here is looking for confidence that the borrower will be able to successfully complete the project as planned and deliver the defined exit. 

 

We provide indicative term sheets, comprehensive reviews & validation.

Once the initial assessment shows merit, Bowery issues an indicative term sheet outlining key deal elements. This step ensures all parties align before full diligence begins — a nod to our emphasis on transparent communication. The subsequent due diligence phase (which includes all issues noted above) commences on the prospective borrower signing and returning to Bowery the indicative term sheet. This process includes engaging external consultants where necessary to ensure no detail is overlooked, strengthening investor confidence.

 

We engage our Investment Committee for oversight.

The final step involves presenting the findings to Bowery’s Investment Committee. Comprising experienced directors and external experts, the committee rigorously reviews each transaction for approval. Meetings are held twice weekly, ensuring timely decisions while maintaining high standards.

 

Due diligence never stops! 

Bowery’s due diligence doesn’t end with loan approval. Why should it? Supporting a project to keep it on track is critical, so we continuously monitor progress, ensuring compliance with terms and proactive management to address potential issues before they arise – prudent for passive loans and crucial for construction loans.

Bowery’s ongoing assessment and monitoring continues until exit i.e. when the loan has been repaid by the borrower. 

 

All lenders have due diligence processes — does Bowery’s really matter?

Yes! With a mindset that the bare minimum is not good enough, we go “above and beyond” to ensure every transaction is thoroughly vetted. 

For example, Bowery’s choice to adopt a unified suite of transaction documents, developed by a highly regarded legal firm, ensures consistency and reduces the likelihood of errors. This underscores our commitment to creating a robust framework that safeguards investors. 

Overall, our due diligence approach not only protects investors but also reinforces Bowery’s reputation for operational integrity, adherence to best governance and practice, and excellence in the private lending space.

 

Build your wealth with Bowery.

We go beyond the basics, engaging a meticulous, multi-layered process that protects your investment and ensures peace of mind. The best part? Our due diligence is just one of the ways we support investors. 

To explore building your wealth with Bowery, contact us.