Origin Credit Advisers LLC Launches Origin Strategic Credit Fund Seeking Consistent Stream of Risk-Adjusted Income, Appreciation and Capital Protection
Origin Credit Advisers LLC (OCA), an investment adviser registered with the SEC and a newly formed affiliate of multifamily real estate fund manager Origin Investments, is launching the Origin Strategic Credit Fund, an open-ended fund designed to provide qualified purchasers with a consistent stream of risk-adjusted income, appreciation and capital protection.
The Origin Strategic Credit Fund is targeting investments in securitized bonds and commercial real estate collateralized loan obligations backed by collateral pools that are 90% or more composed of multifamily housing assets and non-securitized private positions in first- and second-lien preferred equity and mezzanine debt of multifamily real estate assets.
"The Strategic Credit Fund affords us the flexibility to move across a wide spectrum of multifamily investments to capitalize on the opportunities that exist," said Thomas Briney, President and Chief Investment Officer of Origin Credit Advisers. "It's really a malleable Fund. It allows us to do what we do best: identify and analyze multifamily investment options and then move to where the market is providing mispriced acquisition and disposition opportunities."
The primary benefits of the Strategic Credit Fund are:
- Downside Protection. The Fund's investments will be senior to underlying common equity in payback priority, targeting impairment protection with a 20% to 40% cushion to loss in underlying collateral value.
- Distribution Reinvestment. Investors can participate in the Fund's distribution reinvestment program (DRIP) to auto-invest their distributions.
- Hedge Against Inflation. The Fund seeks to allocate 30% to 60% of its equity to floating rate debt investments, which means that when interest rates rise, so do the borrowers' interest payments.
OCA was formed to source and manage multifamily credit investments, including specific funds such as Origin Strategic Credit Fund and its predecessor, Origin Multifamily Credit Fund, which raised capital to invest in conservatively leveraged Freddie Mac offerings backed by cash-flowing and geographically diverse multifamily mortgage loans. In his role as President and Chief Investment Officer of OCA, Briney is responsible for structuring the funds offered by OCA, executing the strategic investment decisions, overseeing all operations, and collaborating on the raising of capital, including from institutional investors.
Briney already has been instrumental in the success of Origin's first credit fund, Origin Multifamily Credit Fund. The Multifamily Credit Fund has acquired $300 million in bond value to date. Further, though December 31, 2022, the fund has produced a net distribution yield of 8.0%1 to investors and a 7%2 average annualized net yield since inception.
"Tom has been a valued member of the Origin team for 12 years, meeting every challenge and fulfilling every role asked of him," said David Scherer, co-CEO of Origin Investments. "His involvement in helping to conceptualize and structure our credit funds, along with almost 20 years of experience, make him uniquely qualified to launch Origin Credit Advisers."
Since joining Origin, Briney has served as managing director of acquisitions, and prior, as vice president of asset management, overseeing the firm's real estate portfolio assets. Earlier in his career, he underwrote and transacted commercial real estate investments at Equity Office Properties and worked as a commercial credit analyst at JP Morgan Chase.
About Origin Credit Advisers
Origin Credit Advisers is an investment adviser registered with the SEC that provides yield-focused multifamily debt investments for qualified purchasers and was founded in 2023 as an affiliate of Origin Investments. The firm's leadership team has 15-plus years of equity and credit markets experience, utilizes a proprietary suite of machine-learning models to aid in investment decisions, and works in fast-growing markets to gain in-depth knowledge of market fundamentals. To learn more about the Strategic Credit Fund, visit www.origincreditadvisers.com.
- The net distribution yield is as of 12/31/22, is net of all management fees but not net of performance fees, and is calculated utilizing this formula: (December 2022 distribution divided by equity invested) divided by the (31 days in the month divided by 365 days in the year.)
- The average annualized net yield since inception is as of 12/31/22, is net of all management fees but not net of performance fees, and is calculated utilizing this formula: (Fund Level Distributions/Invested Equity)/(# of days since January 18, 2021/365).
Any fund performance data contained herein is for illustration and discussion purposes only and is not intended to be, nor should it be construed or used as, financial, legal, tax or investment advice or as an offer to sell, or a solicitation of an offer to buy, any interest in the Strategic Credit Fund ("SCF"). Any offer or solicitation of an investment in SCF may be made only by delivery of a Confidential Offering Memorandum ("Offering Memorandum") to qualified prospective investors, and the Offering Memorandum is controlling in the event of a conflict with this material. This material is current only as of the date indicated and does not contain certain material information about SCF, including the terms of, and risks associated with, investment in SCF. Certain information has been obtained from third-party sources and, although believed to be reliable, it has not been independently verified and its accuracy or completeness cannot be guaranteed and should not be relied upon as such. SCF is an unregistered investment vehicle commonly called a private equity fund. Substantial risks are associated with investing in private funds, including, without limitation, that an investor could lose all or a substantial portion of his/her investment and that investments are illiquid. A more complete description of the risks and other disclosures involved in investing in SCF is contained in the Offering Memorandum. Before making any investment, you should thoroughly review the Offering Memorandum with your financial, legal and tax advisors to determine whether an investment in SCF would be suitable for you. Past performance may not be indicative of future results. Results presented herein do not reflect the results of any one portfolio. Net-of-fees returns are calculated net of actual management fees but not net of performance fees. This information may contain certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance, and actual results or developments may differ materially from those discussed. No investor should assume future performance will be profitable or equal the previous reflected performance. For reasons including changes in portfolio holdings, and the date on which an individual became an investor, the performance experienced by a specific investor may vary substantially from that indicated in the performance results. Additionally, the performance results displayed herein may have been adversely or favorably impacted by events and economic conditions that will not prevail in the future. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.
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