Alignment
of Interest
➔ Profit splits occur only after investors receive their preferred return.
➔ Principals have invested their own capital in The Fund alongside the investors.
Security
➔ Real estate-backed protection.
➔ Senior first lien position.
Diversification
➔ Loans are diversified geographically and across several resilient asset classes.
➔ Risk is spread across a portfolio of loans.
Underwriting
➔ Loans must meet stringent underwriting. We place a lot of emphasis on loan to value ratios, asset class & location, borrower experience, net-worth, FICO, etc.
Distribution
Frequency
➔ Quarterly distributions, with intent to accelerate to monthly distributions.
Passive
Cash Flow
➔ Delivering attractive returns with first lien protection and limited liability to LPs.
➔ Predictable returns.
Risk Adjustment
Returns
➔ While generating above-market returns, The Fund is able to reduce exposure to market volatility. A key function of this is the short duration of the loans. Most loans are repaid within 11 months.
➔ Fundamentally, investments in debt are less risky than an equity investment.
Non-correlated
Returns
➔ Our yields are stable because they are not tied to the volatile stock market.
