Benchmark interest rates are now at their lowest levels in more than three years, following multiple Federal Reserve rate cuts since late 2024,1 with futures markets continuing to signal the potential for additional cuts ahead.2
Returns across the private asset class have started to moderate as interest rates fall, placing greater emphasis on how deals are structured, not just where capital is deployed.
DLP Capital’s fund platform, including the DLP Lending Fund and DLP Preferred Credit Fund are intentionally structured for this phase of the cycle. We focus on:
- Fixed-rate lending to help preserve yield as rates fall
- Floating-rate back leverage, allowing borrowing costs to reset lower more quickly
- Conservative underwriting, with loans backed by tangible real estate collateral and disciplined loan-to-value ratios
This structure is designed to support spreads with more resilient yield while prioritizing capital preservation—particularly important as return dispersion across private credit continues to widen.
In a market where headline returns are compressing, structure, discipline, and asset quality matter more than ever. DLP’s approach is built to navigate changing rate environments while staying focused on downside protection and long-term performance.
Falling rates expose weak structures quickly. Proactive investors who understand which loans are secured, which borrowers are sound, and which strategies are structured to preserve both principal and return.
For those interested in a deeper look at the market dynamics behind this shift, you can read the full article by DLP Capital’s Director of Family Office & RIA Investor Relations, Shawn Groves, here.
The DLP Living Fully Community Fund
DLP Capital is proud to introduce The DLP Living Fully Community Fund, our first new sponsored fund in four years and our first non-evergreen fund in more than six.
The Fund pairs attainable housing with lifestyle-driven, hospitality-focused, Thriving Communities to target strong returns for investors—advancing DLP’s mission to deliver long-term value while helping address America’s housing challenges.
It is anchored by DLP’s LivingFully Resorts thoughtfully curated destinations that blend premium RV sites, vacation cottages, flexible event spaces, and resort-style amenities designed for anyone from family vacations and group retreats to weddings, reunions, and other celebrations.
Previously limited to existing investors, the Fund opened to all investors on January 1, 2026, with a $100,000 minimum investment, offering a streamlined way to participate in DLP’s growing portfolio of lifestyle-focused communities that blend wellness, hospitality, and long-term investment value.
You can access the DLP Living Fully Community Fund fact sheet here.