DLP Preferred Credit Fund

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The Preferred Credit Fund is lending capital focused on operators, builders and developers in the country. These top-tier operators and builders share our mission to create, improve, and preserve affordable workforce housing. Through our strategy, we help these sponsors scale their businesses and make an impact.

The Fund will invest in opportunities such as, the origination and acquisition of mortgage loans. These loans are against non-owner-occupied single-family and multifamily assets. The loans are always in a Preferred Credit position, typically with a personal guarantor and significant equity invested behind the Fund’s loan. The Fund does not own real estate directly, but instead lends capital to real estate operators.

KEY FUND BENEFITS

Monthly Distributions
Evergreen fund structure offering ongoing liquidity
Targeted annual returns of 10-11%

Accredited Investors only*

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Fund Highlights

Open-ended, private credit real estate fund that enables the manager to make debt investments for the acquisition, repositioning, and construction of primarily workforce housing assets designed to provide consistent double-digit returns to investors.
Loans are typically short-term in nature, ranging from six to 24 months.The short-term duration focus of the fund provides significant liquidity to investors and should provide protection from rising rates and inflation.
A thorough underwriting process that makes sure loans are only made to borrowers that have a high probability of success with the project/property by primarily lending to proven successful operators with high credit scores, ample liquidity, and personal guarantees.
Subordinated management fees, whereby investors receive their monthly preferred return distributions before DLP receives any fees; aligns investors’ interest with DLP’s.

Fund Overview Download Tearsheet

Fund Overview

Fund Type	Preferred Real Estate Credit
Fund Investments	Loans and preferred equity investment backed by real estate-1st position, subordinate, mezz, note on note finance, and preferred equity primarily workforce housing assets.
Direct/Indirect Security	Notes Secured by Equity Pledges, Mortgages and Personal Guaranties
Inception Date	October 2021
Fund Term	Evergreen
Distribution Frequency	Monthly (Pref); Annual (EDC)
Management Fee	2.0%
Annual Management Fee Rebate for Investments of $1M+**	0.50%
Annual Management Fee Rebate For Investments of $10M+**	1.0%
Targeted Current Distributions	10%
Preferred Return	9%
Targeted Annual Net to Investor	10-11%
Management Performance Fees	20% upon achieving 9% preferred return
Redemptions	90-Day Notice
Benefits of Leverage	Yes
IRA Investment Option	Yes
Tax Shelter through Depreciation	No
Subject to UBIT	Yes
Target Fund Size	$1,000,000,000
Minimum Investment	$200,000
Manager Co-investment	Minimum 5% Committed Capital
Must Be Accredited	Yes
Tax Reporting Method	K-1
Audited Financials	Yes; CohnReznick
Institutional Option	Yes
Reporting Frequency	Quarterly

Past performance is not a guarantee of future performance.

* Accredited Investor Definition: For an individual to be considered an accredited investor, he or she must have a net worth of at least one million U.S. dollars, not including the value of one’s primary residence or have income at least $200,000 each year for the last two years (or $300,000 together with his or her spouse if married) and have the expectation to make the same amount this year.

**Management fee rebates of .5% for >$1M investment and 1% for >$10M investment are per account, per fund, based on a minimum annual investment balance-as of April 1st for the 2023 calendar year; per calendar year thereafter.

Risk Disclaimer: Investing in private real estate funds and notes secured by real estate has certain inherent risks, which could result in the loss of some or all of your principal investment.

DLP Preferred Credit Fund

KEY FUND BENEFITS

Fund Highlights

Fund Overview

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