Invest
Key Terms
| Category | BridgeInvest Credit Fund V LP |
|---|---|
| Investment Strategy | Core focus on origination and acquisition of senior-secured U.S. commercial real estate loans |
| Structure | Open-end LP (Private REIT) |
| Domicile | Delaware LP (U.S. Taxable, U.S. Tax Exempt, and Non-U.S.) |
| Target Return 1 | 10-12% net return, distributed quarterly (distribution reinvestment option also available) |
| Capital Call Mechanism | Sequential drawdown with regular closes |
| Liquidity 2 | Subscriptions: Quarterly, subject to 30-day notice Redemptions: 2-year soft lock-up subject to 5% penalty in Year 1 and 2% penalty in Year 2 Subject to 90-day notice, investors can redeem interests on a quarterly basis |
| Management Fee | 1.50% on NAV |
| Preferred Return | 7% |
| Performance Allocation 3 | 10%-15% (based on commitment size) |
| Carried Interest Waterfall | 1. 100% to LPs until reaching preferred return of 7% per annum 2. Based on commitment, 100% to GP until GP makes 15%-10% of all net distributable proceeds 3. Based on commitment, 85%-90% to LPs and 15%-10% to GP |
Notes
- Target Net Return represents the annualized internal rate of return projected to be generated to limited partners, net of management fees, carried interest, fund expenses, and organizational costs. The Target Net IRR is calculated using a discounted cash flow model based on projected fund-level capital calls and distributions derived from underwriting assumptions regarding portfolio construction, investment pacing, entry and exit multiples, holding periods, and exit timing. Gross projected cash flows are reduced by fees and expenses in accordance with the Fund’s governing documents, and carried interest is applied pursuant to the Fund’s distribution waterfall. Net IRR reflects the discount rate that sets the net present value of projected net LP cash flows to zero. Target returns are hypothetical and do not reflect actual returns to any BridgeInvest client or investor, and no representation is made that Fund V, or any investor will or is likely to achieve the target results presented. Actual results will differ and may be materially lower than the target presented herein and are further subject to change based on market conditions. Target returns do not take into consideration withholding taxes applicable to investors. Please refer to the confidential private placement memorandum, limited partnership agreement and subscription agreement and other definitive documentation for Fund V for additional information on the risks and limitations, and assumptions, of the target returns presented herein.
- The Fund may satisfy withdrawal requests within 90 days following a withdrawal date but generally expects to satisfy withdrawal requests 12-24 months following a withdrawal date.
- Performance allocation rates: Capital commitment below $5MM: 15%; capital commitment of $5MM-$24.9MM: 12.5%; capital commitment of $25MM and greater: 10%.
Note: Loan-level fees (paid by the borrower): 0.5% one-time structuring fee on the total loan amount; 0.2% annual servicing fee on the total loan amount.