Trevian Capital – Differentiators in a Crowded Market
Since 2013, Trevian Capital has provided short-term, first-mortgage bridge loans secured by multifamily and commercial real estate nationwide. Trevian has originated and serviced approximately $575,000,000 in high-yield, senior-secured bridge loans across 68 transactions in 19 states. Trevian successfully held its first close of Trevian Capital Debt Fund, LP (the “Fund”) in March 2021. The open-ended investment vehicle provides investors with monthly income from low-volatility multifamily and commercial real estate debt investments, target net returns of 10%, and downside principal protection. Trevian anticipates holding a second close in June 2021.
Unlike many of its competitors who provide longer-term lower yielding bridge loans, Trevian is able to generate outsized risk-adjusted returns by focusing on the short-term/special situation market segment. In this segment, borrowers with shorter duration business plans are willing to pay increased pricing in exchange for a loan that affords them speed, certainty of execution, and flexibility. Borrowers come to Trevian with the following short-term needs:
-Time-constrained transactions (closings that need to occur in less than 30 days).
-Value-add real estate projects undergoing renovation and/or lease-up stabilization, typically where the business plan is two years or less.
-Construction-completion (finishing construction or renovation and providing time to either lease up and refinance or sell).
-Bridging the seasoning gap to a Fannie Mae Freddie Mac, or FHA refinance.
-Transitional or distressed sponsorship (credit issues, liquidity issues, prior defaults, partnership disputes, etc.) where the loan is adequately supported by the underlying value of the real estate, but the borrower needs more time to qualify for conventional financing.
-Short-term special situations that require creativity and flexibility not offered by conventional lenders.
Trevian’s significant deal volume of approximately 50 inbound bridge loan opportunities per week allows them to select only the most compelling opportunities yielding the best risk-adjusted returns, with a primary focus on multifamily properties, industrial, self-storage, medical office, and other commercial real estate assets that fit the Fund’s investment profile.
If you have any questions and/or are interested in learning more about 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.