Strategic Credit Fund
Yield-Focused Multifamily Debt Investments
Total Net Return Since Inception (Non-Annualized, 6/1/23-12/31/24)1
16.6%1
Origin Senior Management Co-Investment 2
$9M2
Asset Type
Multifamily
Investment Objective
Income
Fund Structure
Evergreen
Minimum Investment
$100K
Key Benefits
The Strategic Credit Fund’s objective is to provide Qualified Purchasers3 with a consistent stream of risk-adjusted income with capital protection.
Priority Position
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-end structure allow for flexibility across several product types and is 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.
Target Investment Portfolio
Securitized Products
Pools of fixed and floating rate first-lien multifamily-centric loans originated by Freddie Mac and other lenders.
Direct Financing
Privately originated senior and mezzanine-level financing provided to multifamily real estate projects and operators.
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.
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 12/31/2022 to 12/31/2023. Returns are unlevered.
Fund Performance
16.6%
Total Net Return Since Inception (Non-Annualized, 6/1/23-12/31/24)1
11.5%
Trailing Net-12 Month Total Return as of 12/31/241
11.5%
Total Net Return Year to Date1
Monthly Total Return (% Net of Fees)1,4
| | JAN | FEB | MAR | APR | MAY | JUN | JUL | AUG | SEP | OCT | NOV | DEC | YTD |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 0.83% | 0.83% | 0.83% | 1.13% | 0.93% | 0.83% | 0.84% | 0.97% | 0.98% | 0.87% | 1.34% | 0.52% | 11.5% |
| 2023 | N/A | N/A | N/A | N/A | N/A | 0.50% | 0.50% | 0.50% | 0.50% | 0.10% | 0.90% | 1.53% | 4.62% |
Resources
Interested in Learning More?
Let Tom Briney, portfolio manager for the Strategic Credit Fund, walk you through an overview of the Fund.
How Does Debt Financing Work?
Learn more about how this form of investment provides important capital for multifamily development.
Take the Next Step
Get your questions answered and take the first steps to invest.
- Total returns are as of 12/31/24 and pertain to the Series A interests. Returns are calculated by adding the aggregate dividends paid, including amounts reinvested through the Fund’s dividend reinvestment program, and appreciation in net asset value, net of fees and expenses, over each stated trailing period. Fund inception date: 6/1/23.
- This is an aggregate amount that has been invested in Origin Credit Advisers’ Strategic Credit Fund since the inception of the company in 2021.
- A qualified purchaser is an individual or a family-owned business that owns $5 million or more in investments, not including a primary residence or any property used for business.
- Returns shown in this section are net of fund fees and assumes reinvestment of distributions. Fund inception date: 6/1/23.