How it works for investors

Hybrid Debt Fund I's investors are risk aware and still expect consistent returns. With this in mind, we implement two investor buckets to offer flexibility to your investment. Both A and B shares participate in all Hybrid Debt Fund deals, but have different functions and different returns.

Investing with the Hybrid Debt Fund's A shares has numerous benefits, including consistent returns, preferred return, and the fact that this is the lower exposure tranche. Additionally, the funds received for the A share will be the first to be returned, and up to 50% of the project loan to value is allocated for investment purposes. These could also possibly be filled by a bank, which if done would provide better returns for the B Shares.  

Our profit-sharing approach offers expected returns ranging from 11-13%. In the unexpected event of foreclosure, this tranche is the second to be paid out, with the funds allocated to exceed 50% of the project loan-to-value. The B Shares are the higher tranche and hence are the higher risk shares.  They will participate in the upside of the participation. 

Investors make a commitment to the fund by signing a letter of commitment.

Upon the underwriting team's approval of a deal, the fund calls for funding based on submitted letters of commitment, and preferred return is activated.

A current preferred return of 5.5% is disbursed quarterly on all active contributions, including both A and B shares.

As projects are paid back, the fund has a profit split with the developer. The first profits are distributed to the A tranche and the remaining profits are split between the B tranche and the GP.