Yield-Focused Debt Investments
The Strategic Credit Fund is a multifamily-centric private credit Fund designed to provide qualified purchasers with a consistent stream of risk-adjusted income with capital protection.
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Fund Benefits
Downside Protection
The Fund’s investments are senior to the underlying common equity in payback priority, seeking impairment protection by a 30% to 40% cushion to loss in underlying collateral value.
Distribution Reinvestment
Investors can choose to participate in the Fund’s distribution reinvestment program to auto-reinvest their distributions.
Hedge Against Inflation
The Fund seeks to allocate 30% to 60% of its equity to floating rate debt investments, which means that when interest rates rise, so do the borrowers’ interest payments.
Tactical Portfolio Management
The Fund’s investment strategy and open-ended structure allows for flexibility across several product types and are designed to deliver risk adjusted returns and income in any market environment by moving to where the market is providing mispriced buying and selling opportunities.
Why Securitized Credit?
Our target securitized credit investments are senior to common equity property owners in payback priority. We aim to provide Fund investors with returns that are adjusted for risk. Our goal is to maintain an average buffer of 30% to 40% against potential losses.
REIT Structure
The Strategic Credit Fund is structured with a REIT subsidiary. The REIT subsidiary is intended to allow Fund investors to take a 20% federal tax deduction on distributions of ordinary income pursuant to the REIT pass-through tax benefit1 introduced by the Tax Cuts and Jobs Act of 2017. The REIT structure is also intended to block Unrelated Business Taxable Income (UBTI).
1) The REIT pass-through deduction is only available to ordinary dividends paid by the REIT and is not available to distributions of long-term capital gains or return of capital. Prospective investors should consult with their tax advisers for more information.
2) The highest tax rate on long-term capital gains distributions is 20%; return of capital distributions are not subject to taxation.
Highest Ordinary Income Tax Rate
37.0%
29.6%
Effective Highest Tax Rate on Ordinary After 20% Reduction2
Why Multifamily?
Investments in multifamily assets have consistently generated higher risk-adjusted returns compared with other property types.
Housing is an essential need regardless of economic cycles.
Note: The bubble sizes in the corresponding chart represent the Sharpe Ratio, a measure of return per unit of risk, for each property type.
Source: National Council of Real Estate Investment Fiduciaries (NCREIF) Property Index, which represents the average annualized return over each five-year period from 1/1/1990 to 12/31/2022. Returns are unlevered.
Why Origin Credit Advisers
Equity Mindset
Our leadership team has 15-plus years of equity markets execution, coupled with credit markets experience, which shape our perspective into underlying collateral and results in multi-dimensional due diligence and underwriting processes.
Origin Multilytics℠
We utilize a proprietary suite of machine-learning models that identifies the characteristics of high-risk loans and micro-markets, providing insight before problems arise.
Local Market Expertise
Our team lives and works in fast-growing markets to gain an in-depth knowledge of market fundamentals.
Download Overview
Download the deck to receive more detail about:
Our Fund Strategy
Securitized Credit
Freddie Mac Bonds
Fund Terms