Company Performance Metrics
The Opportunity
High interest rate lenders provide commercial borrowers with loans that fill a borrowing gap between traditional banks and private equity capital providers. These loans are typically 1 – 5 year terms with interest rates of 12% - 18% and $1M - $50M in size. When lenders achieve desired returns earlier than loan maturity, they
have a compelling opportunity if they can sell these loans to re-invest their principal into new loans.
Overview of the Strategy
Global Acquisition Partners Income Fund, LP selects and purchases individual performing commercial and industrial loans from high interest rate lenders. The Fund does not purchase loan pools. THey investment strategy is to hold loans for yield, thereby mitigating the risk or reliance on liquid credit markets. The Fund portfolio pays investors a quarterly income averaging a 12% annual yield. They investment strategy is simple, effective and transparent.
The loans they select: 1) are secured by the borrower’s commercial assets; 2) undergo strict underwriting criteria with the added benefit of hindsight - the borrower’s loan payment history; thereby, reducing the risk of write downs or loss of principal. 3) $1 - $10 million principal balance. 4) loans to smaller middle market companies with revenue of up to $75 million and from almost any industry from anywhere in the United States. They only purchase loans of socially responsible companies.
What Sets Us Apart
A balanced approach to risk, steady attractive income without volatility from stocks or bonds.
They Key To Success
Risk management. The Fund spreads all invested capital equally across the portfolio, thereby, reducing capital at risk of 5% - 10% per loan. they diversify by purchasing loans from many different industries so your capital is never exposed to the risk of any single industry.
