Premium Finance Investor Info

investor advantage

Recurring Lending. Short Duration. Secured by Insurance.

Premium finance provides investors with exposure to a recurring, short-duration lending business supported by an essential underlying product, commercial insurance.

The Fund provides financing to businesses that choose to spread their insurance premiums over monthly payments, creating a portfolio of short-term loans that are generally fully amortizing and secured by the unearned premium associated with the financed insurance policy.

As loans are repaid, capital can be continuously recycled into new premium finance loans. Established relationships with insurance brokers can also support repeat business and annual renewals, providing opportunities to deploy capital across a growing portfolio.

FOR THE investor, THE BENEFITS INCLUDE:

- Short-duration lending through typically 10-month amortizing loans
- Secured lending backed by the unearned insurance premium
- Capital recycling as principal is repaid and redeployed into new loans
- Portfolio diversification across borrowers, brokers, and industries
- Quarterly distributions with substantially all net income intended to be distributed
- Targeted total return of 10%+ per annum, after expenses, based on management’s model assumptions
- Accredited investor access to a specialized private credit strategy

The result: exposure to a specialized lending strategy designed around short-term loans, recurring premium finance activity, and secured commercial credit.