Rising Tide Debt Fund
Minimum Term
1 Year
Minimum Investment
$100,000 Accredited Investors Only
Fund Size
$25,000,000
Equity Buffer for Default Mitigation
Maintaining a prudent equity cushion helps protect the fund from borrower default risk.
In-House Industry Professionals
Our team is comprised of real estate brokers, property managers, property developers, and construction professionals. This comprehensive expertise allows us to effectively oversee projects, assess risks, and mitigate potential downside impacts related to borrower defaults.
Strategic Positioning
Our integrated in-house capabilities enable proactive management and oversight, reducing the likelihood of default and minimizing losses.
Interest Payment Frequency
Interest Payments will be made on a quarterly basis, providing investors with regular income throughout the investment term unless they choose to roll over the interest into the fund.
Interest Accrual Method
Interest will accrue on the principal amount and, if left in the fund, will be compounded on the accumulated interest. This means that interest earned but not withdrawn will be added to the principal, increasing the base for future interest calculations and enhancing overall returns over the investment period.
Note: This can be modified 90 days prior to the expiration of each anniversary.
Term Type
Details
Notes
Additional Considerations
Lock-in Periods: Penalties for early withdrawl may apply
Redemption Notice: A 6-month notice prior to expiration of investment term is required for redemptions
Investment Approach & Due Diligence
Thorough Investment Due Diligence
Every potential investment undergoes a comprehensive analysis of the borrower's experience and the property's market value to ensure sound decision-making.
Real-Time Market Analysis
Continuous monitoring of real estate trends and economic indicators enables us to proactively adjust our strategies, mitigating exposure to market fluctuations.
Cautious Loan-to-Value (LTV) Ratios
We maintain conservative LTV ratios—up to 75%—to provide a healthy equity cushion and safeguard our investments.
Legal & Compliance Standards
Strict adherence to legal requirements and thorough documentation to protect both the fund and investors from regulatory risks.
Robust Underwriting Procedures
Our underwriting process critically evaluates each project's feasibility, considering factors such as location, borrower experience, and projected outcomes to guide our investment decisions.
Strategic Diversification
We diversify our loan portfolio across various projects and geographic locations to reduce risk and enhance stability.
Asset-Based Collateral
All loans are secured by a mortgage on the property, ensuring tangible collateral for each investment.
Communication & Transparency
Effective communication and transparency are fundamental to building and maintaining investor confidence. We are committed to providing clear, consistent, and comprehensive information about the fund's operations, performance, and strategic decisions.
Quarterly statements will be provided via our software system, including: Investment details, interest accruals, distributions, and status updates that will summarize performance and outlook.
Opportunities for investor meetings (virtual or in-person) and open communication channels will be maintained to address questions and feedback.
Risk Factors
Investors should consider the following risks, which are inherent in fixed-rate, collateralized lending with leverage. While the fund offers predictable returns through fixed interest rates, inherent risks remain that could impact investment performance. We provide these disclosures to enable informed decision making.
Market & Economic Fluctuation
Changes in macroeconomic conditions, interest rates, and property markets can reduce collateral values and impact recovery.
Collateral Valuation & Leverage
Loans are secured by collateral at up to 75% of ARV. Fluctuations in property values can affect collateral adequacy and recovery prospects.
Borrower Default
Despite collateral backing, borrower defaults can lead to partial loss, especially if collateral value declines.
Interest Rate Environment
Broader interest rate movements can influence borrower behavior and market conditions, though fixed returns protect against rate fluctuations.
Liquidity & Redemption Risks
Redemption requests are processed with a 6-month notice, redemption windows in January and July. Timing could impact impact liquidity.
Leverage Risks
Leverage amplifies gains but also increases risk of principal loss if collateral values fall or defaults occur.
Regulatory & Legal Risks
Changes in laws and regulations may affect enforceability and operational conditions.
Operational Risks
Internal controls and processes are maintained to minimize operational failures.
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