Origin Strategic Credit Fund
The Strategic Credit Fund’s objective is to provide investors with a consistent stream of risk-adjusted income with capital protection.
Key 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-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. In turn, we seek to compensate Fund investors with risk-adjusted returns that have a 30% to 40% cushion to loss.
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.
How Does Debt Financing Work? Introducing the Strategic Credit Fund
Learn more about how this form of investment provides important capital for multifamily development.
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