Former Qualitas duo launch funds management shop

Former Qualitas duo Manuel Paraskevos and Ethan Dixon have opened Poinsettia Capital, a Brisbane-based advisory and funds management firm that provides tailored debt and equity finance for mid-market residential projects in South-East Queensland.

The firm will initially invest in facilities of $5 million to $75 million for land subdivisions, townhouse estates, and mid-rise projects that have pipelines tied to the Olympic Games.

ASIC figures show that close to 3000 construction firms collapsed in Australia in FY23-24, up 28% year-on-year, which has halted thousands of dwellings in South-East Queensland and compounded shortages ahead of the 2032 Olympics.

At the same time, Queensland's housing pipeline faces mounting pressure from a population surge of about 135,000 (2.5%) in the year to March 2024.

Government forecasts project a need for nearly one million additional dwellings by 2046.

In response to construction firm collapses, Poinsettia Capital noted that a growing cohort of mid- to large-scale apartment and mixed-use developers are bringing construction in-house, launching their own building arms to regain cost and program control amid contractor failures and escalating labour costs.

Industry commentary refers to this as a "strategic delivery trend" that more developers in South-East Queensland are adopting as construction resources become scarce. It also notes that an integrated developer-builder model can reduce the risk of stalled projects.

However, traditional financiers remain cautious, with major banks tightening credit to the mid-market, and large alternative lenders prefer bigger deals with established contractors, Poinsettia Capital said.

"First-time developer-builders - despite often having highly experienced construction professionals on staff - struggle to secure the flexible capital needed to break ground," Poinsettia Capital said.

"The result is a widening funding gap that also shuts out wholesale investors..."

Poinsettia Capital co-founder Paraskevos said developer-builders bring deep alignment and direct cost control, yet mainstream financiers often dismiss them because "they don't fit a traditional risk template."

On the other hand, he said the firm evaluates the entire delivery team - including construction personnel, external consultants, and supply chain contingences - so that "capital can flow to projects with genuine capacity to perform."

Mid-sized projects face also funding challenges as larger lenders chase bigger deals, Paraskevos added.

"Poinsettia Capital exists to change that, bringing institutional-grade rigor to mid-market transactions - but with the agility and local insight Queensland developers and investors need," he said.

Meanwhile, Dixon said that by focusing solely on Queensland, the firm can move faster and tailor flexible senior and stretch-senior facilities that unlock the mid-market.

"Our goal is to deliver high-quality outcomes for developers while giving investors the chance to participate in Queensland's undeniable growth through well-structured, robust investments," Dixon said.