PRIVATE LENDING

KEY BENEFITS:

  • Attractive Yields: Higher returns than public debt

  • Consistent Cash Distributions: Steady monthly payout

  • Risk Mitigation: Collateral-backed opportunities, carefully selected

  • Diversified Exposure: Access private deals not available individually

Sample Loans

Loan: Short term debt with a keen sense of opportunity in a financially distressed company

Strategy: Opportunistic | Hold Period: 2-4 yrs.


Projected Net Returns:

  • IRR: 18–25%

  • Equity Multiple: 2.0–3.0x

  • Preferred Return: 10-12%

Loan: Mezzanine debt for growth oriented middle market companies


Strategy: Value Add | Hold Period: 3-5 yrs.


Projected Net Returns:

  • IRR: 12–16%

  • Equity Multiple: 1.7–2.2x

  • Preferred Return: 8.0-9.5%

Loan: Senior secured direct loans to stable, established middle market companies


Strategy: Core | Hold Period: 4-6 yrs.


Projected Net Returns:

  • IRR: 8-10%

  • Equity Multiple: 1.4–1.6x

  • Preferred Return: 6-7%

Potential Risks & Mitigation Strategies

Risk

Mitigation Strategy

Rising Interest Rates

We favor low to moderate leverage (<60% LTV), and often lock in fixed or capped debt.

Rent Control Policies

We invest in landlord-friendly states and thoroughly vet local legislation before entering a market.

Oversupply

We target metros with job/population growth and undersupplied submarkets.

Operating Costs / Insurance Spikes

Sponsors budget 5–10% annual escalators and secure multi-year insurance policies.