Equity-One is turning 20.
The Melbourne-based commercial mortgage lender and investment fund is marking the milestone this month — two decades since Managing Director Dean Koutsoumidis founded the firm — with a standout achievement: $2.7 billion in loans funded since 2005.
“If 20 years teaches you anything, it’s clear that strong client relations, providing the right working conditions and environment for staff and sticking true to the core values of the business is crucial to a quality business model," Koutsoumidis said.
Founded in 2004, Equity-One quickly established itself as a specialist in property financing and investments, supporting borrowers seeking non-bank lending solutions and investors on the lookout for secure, attractive returns. The firm became majority-owned by Westlawn Finance Limited — part of the Consolidated Operations Group (COG) — following its acquisition in 2022.
“We try not to forget our core values and why we are relevant to both groups of clients," Koutsoumidis said. "Whilst the way we do business evolves, with electronic [and] digital ways of signing documents and communicating, the core function of our firm remains the same: We focus on our people. The relationship with our borrowers, the brokers who introduce them, and the investors that fund our mortgages are our life blood. We aren’t really one entity, but rather the sum of all the relationships we have with clients.”
Senior Portfolio Manager Tom Danaher, who has 17 years of service under his belt, added that the firm's long-term staff retention is one of its strengths.
"It is a testament to the loyalty of our staff, but also the fun working environment we have created in the office," he said. "The staff genuinely enjoy each other’s company.”
Equity-One offers short-term, property-backed loans ranging from $50,000 to $10 million for Australian companies, trusts, and self-managed superfunds (SMSFs), typically on 12-month, interest-only terms.
The private lender's anniversary comes as the need for small- and medium-sized business loans in Australia continues to gain traction.
As of June 2024, there were more than 2.6 million businesses in Australia, an increase of about 2.8% from the previous year, according to the latest data available from the Australian Bureau of Statistics (ABS). And small businesses make up roughly 97% of all businesses in Australia, according to the Department of Treasury.
Meanwhile, increased regulatory scrutiny has made the process of obtaining traditional banks loans for some businesses more gruelling than ever. But it's also created a gap in the market for business lending opportunities.
In the case of Equity-One, Koutsoumidis sums up the company's success with a clear motto: keeping it simple.
"Our growth is very much attributed to staying the course with this belief," he told Australian Broker. "We try to stay focused on delivering settlement certainty to our SME borrowers who need fast and simple solutions.
"Bank criteria imposed on borrowers has certainly increased," Koutsoumidis continued. "The market for non-bank lending, however, has grown and somewhat filled the gaps in the demand for commercial credit. Demand for non-bank lending is still strong, and I feel there is still plenty of opportunity for growth."
