Fractional property investment firm DomaCom recently raised about $3 million in capital.

After its recent win in the Federal Court, the firm is aiming to capitalise on its success by recapitalising.

In a press release this week, the firm said it secured $2.95 million in funding by issuing a convertible security to a Melbourne-based institutional investor, Thundering Herd.

DomaCom said the security would carry a two-year term and pay an annual 15% coupon rate quarterly, with a 15 cents per note conversion price.

DomaCom chief executive Arthur Naoumidis said the firm was pleased it found a "truly high conviction" Australian institutional investor help it deliver on its potential.

"This funding completes a key part of our recapitalisation strategy and positions the company well to leverage from our recent full Federal Court and ASIC milestones," Naoumidis said.

"We are now able to focus on delivering several world leading solutions to two key problems facing many people in Australia - housing affordability and funding retirement lifestyles."

In September, Federal Court proceedings concluded allowing SMSFs to invest in DomaCom's fund, even in the case where a related party was a tenant in the underlying property.