Trevian Capital: CRE Bridge Lending Strategy
Trevian Capital successfully held its first close of Trevian Capital Debt Fund, LP (the “Fund”), an open-ended fund whose investment thesis is the same as the one that Trevian has honed over the past eight years. Trevian Capital, founded in 2013 by Michael Hoffenberg, is an established middle-market real estate finance company that provides short-term, first-mortgage bridge loans secured by multifamily and commercial real estate nationwide. With a focus on the $1mm-$50mm middle-market segment, Trevian has originated and serviced approximately $550,000,000 in high-yield, senior-secured bridge loans across 67 transactions in 18 states. Trevian has yielded positive returns every month since its inception.
Trevian’s newly launched open-ended Fund focuses on providing investors with current income from non-correlated and low volatility investments, strong risk-adjusted returns, and cushion against unforeseen market events, with target net returns of 10% to investors, distributed monthly. Trevian anticipates holding a second close in June 2021.
While the commercial real estate bridge lending market has seen a number of new entrants over the past few years, Trevian’s key differentiators are i) its established brand and strong reputation in the industry, ii) its national footprint relative to its regionally fragmented competitors, iii) its vast nationwide network of mortgage bankers, brokers, and financial advisors assembled over 15+ years, and iv) the longstanding personal and professional relationships between the members of the company’s executive team, which serve to provide a firm foundation for the company.
Trevian’s differentiator of particular importance is the nationwide network it has accumulated during the course of the executive team members’ combined 45 years of industry experience, which today yields an average of 50 inbound bridge loan opportunities per week. Such robust deal volume positions Trevian to be able to select the most compelling opportunities with the highest risk-adjusted yields, pursuing only a small fraction of deals seen. In addition, Trevian has cemented its reputation in the industry as a reliable bridge lender that can navigate nuanced situations, operate efficiently, and provide a good experience to brokers and their borrowers alike.
If you have any questions and/or are interested in Trevian Capital please join Michael Hoffenberg for a webinar on April 7th, or feel free to reach out directly at (212) 376-5636 or [email protected].
The information contained herein (the “Overview”) has been prepared by Trevian Capital Debt Fund Advisor LLC (the “Investment Manager”) and is being furnished on a highly confidential basis to select, qualified investors for their consideration in connection with an investment in Trevian Capital Debt Fund I, LP (the “Fund”). This Overview is for the confidential and exclusive use of the persons to whom it has been delivered by the Investment Manager. It may not be reproduced, provided, or disclosed to others without prior written authorization of the Investment Manager and upon request must be returned to the Investment Manager. The Overview does not purport to be all-inclusive or to contain all of the information that a prospective investor may desire. In all cases, interested parties should conduct their own investigation and analysis of the data set forth in this Overview. Investment in the Fund is subject to significant risks due to, among other things, the nature of this Fund’s investments. These risks will be set forth in detail in the Fund’s confidential private placement memorandum.
The views expressed herein are those of the Investment Manager as of February 2021 and not of any later date. This Overview contains forward-looking statements within the meaning of the section of 27A of the Securities Act of 1933, as amended, and section 21E of the Securities and Exchange Act of 1934, as amended. The opinions, forecasts, projections, or other statements, other than statements of historical fact, are forward-looking statements. Although the Investment Manager believes that the expectations reflected in such forward looking statements are reasonable, they do involve a number of risks and uncertainties.
The loan characteristics and other parameters in this Overview are estimates and are provided for illustrative purposes only and are based on the Investment Manager’s perception of such matters as of the date of this Overview. The Fund’s origination strategy and the terms of the loans may change over time.
This Overview does not constitute an offer to sell or the solicitation of an offer to purchase an interest in this Fund. Any offer to sell or solicitation of an offer to purchase an interest in this Overview, if made, shall only be made by delivery of a confidential private placement memorandum and the limited partnership agreement and other governing documents of such Fund, including the Fund’s subscription agreement, and only in jurisdictions where permitted by law.
Investors should not construe the contents of this Overview as legal, tax, investment, or other advice. Investors must make their own inquiries and should consult their own advisors as to the appropriateness and desirability of investing in this Fund and as to legal, tax, and related matters concerning such investment.