Case Study

Background:

Designing an effective capital raising strategy has to begin with the creation of a product that will appeal to the investment community.  During a recent real estate recession the capital markets were in disarray making it exceedingly difficult to find debt capital for the financing of high quality real estate assets.  One of the Attentus principals was a principal with a national Pension Fund Advisor and co-designed and successfully marketed a very unique investment product for Pension Funds.

• Co-designed the first mortgage product providing the opportunity for Pension funds to utilize fixed income capital allocations for the investment in the origination of new commercial mortgages.
• Co-raised the first of several successful funds created for the origination of new commercial mortgages.
• Co-designed the supporting infrastructure allowing for the sourcing and mortgage underwriting.
• Targeted loans were designed to be underwritten at 60% LTV or less at returns targeted at 250bps above corresponding treasuries

• Fully subscribed the mortgage fund
• Average loan was underwritten at 55% LTV
• Average loan was underwritten at over 450bps over corresponding treasuries
• 100% of the loans were performing providing investors and exceptional investment return.