HOW PRIVATE CREDIT IN REAL ESTATE WORKS?
ADVANTAGES OF REAL ESTATE PRIVATE DEBT
REAL ESTATE UNDERLYING
✓ APPROPRIATE LEGAL FRAMEWORK
The legal framework implemented for this type of borrower/lender contractual relationship in North America provides the necessary confidence in its execution.
✓ REAL ESTATE WITH POTENTIAL
The properties located in North America (Canada and the United States) with a potential gain in value are targeted.
✓ MANAGEMENT OF THE RISK OF DEFAULT
The risk of default is managed by a rigorous analysis and selection of borrowers and qualitative real estate buildings located in fast growing areas.
✓ UNCORRELATED WITH FINANCIAL MARKETS
The real estate market is not directly correlated to financial market volatility.
✓ INFLATION = OPPORTUNITY
The risk exposure is minimized by an inflationary environment. The real estate property increases in value which reduces the loan to value ratio of the real estate asset.
FLEXIBILITY & ATTRACTIVE RETURNS
✓ SENIOR DEBT
The debt has a senior rank and first rank security. In case of default, it will be reimbursed first. The fund replaces the bank in this type of transaction.
✓ SHORT DURATION
The loans granted are for short periods of time. Their duration is between 1 and 2 years.
✓ RECURRING INCOME STREAM
Debt instruments have the advantage of generating regular cash flow of income. The mandatory Debt Servicing is paid by the borrower periodically.
✓ RISK MANAGEMENT IN A TIGHTENING MONETARY POLICY
The short duration of the fund’s portfolio will make it less sensitive in the event of a rise in the interest rates.
✓ OPTIMAL RISK / RETURN
This type of “unconventional” loan provides a return on investment that is significantly higher than the return generated by a conventional mortgage.
⇨ For Distribution Coupon: 6% per year, paid quarterly
How to invest?
AVAILABLE ONLY FOR US AND NON-US ACCREDITED INVESTORS
Minimum Investment: 125,000 USD / EUR / CAD
Management fee: 1.5% (20% performance fee above 6% Hurdle Rate with High-Water Mark)
Administrator: Bolder Luxembourg
Custodian: Northern Trust
Auditor: Mazars Luxembourg
Share class A-DIS (EUR Distribution): LU2289964244
Share class B (EUR Accumulation): LU2289964327
Share class C-DIS (USD Distribution): LU2289964590
Share class D-DIS (CAD Distribution): LU2289964673
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