Capital raising topics

Debt and alternative financing

Fair Bridge manages just shy of a billion dollars in real estate credit, with investors backed by Oaktree, Nomura and High Tower. The firm repositioned to a REIT at about $300 million in assets. It now has 625 investors. John got his first audit when the fund held only $10 million, and he now has over 10 years of audited financials. That video opens this hub on debt and alternative financing.

Two interviews cover lending against fine art. Alan started the family office investment boutique 30 years ago after leaving Wall Street. The art is stored in a bonded warehouse, with a UCC-1 filed against it. Another video has Forest explaining that private lending in his community still pays 2 and 13 or 3 and 13, meaning origination points plus interest. Written answers explain bridge loans, crowdfunding and asset-based lending.

9 videos, 5 questions on this topic.

Videos with summaries and takeaways

• Growing a Real Estate Credit Platform to Nearly $1 BillionFair Bridge now manages just shy of a billion dollars, and John ties that to a series of forced changes.
• Fine Art Lending and Collateralized Debt Investor MandateThe guest runs a family office investment boutique that was started thirty years ago after leaving Wall Street.
• Investor Mandate: Private Lending and Alternatives for DoctorsForest runs an investment advisory firm that operates as a multi-family office for doctors and dentists across the US.
• Lending Against Fine Art: A Family Office Debt MandateAlan runs a family office investment boutique that he started 30 years ago after leaving Wall Street.
• Community Bank CEO on Commercial Real Estate Loan CriteriaJohn is CEO and founder of a community bank in Overland Park, Kansas, in the Kansas City area.
• Sourcing Off-Market Deals and Estate Planning: Family Office PanelA family office panel explains that exclusive deals are seldom handed over and usually have to be found.
• A Family Office Investor on Interest Rates, Private Credit and Cash Flow DealsA family office investor describes a portfolio built over 25 years in commercial real estate and finance.
• Raising Capital in a Tough VC Market: Family Office PanelA panel of family office and investor speakers discussed raising capital in a venture market described as being in its third year of the worst conditions for raising funds.
• A 25-Year Investor on Private Credit, Rates and Raising CapitalA family office investor with 25 years in commercial real estate and finance describes how the portfolio looks today.

Questions answered

• How does a bridge loan work for a real estate deal?A bridge loan is short-term money that covers a gap in a real estate deal.
• How does asset-based lending work for growing companies?Asset-based lending is a loan secured by company assets such as receivables, inventory or equipment.
• How do I raise private credit for my business?Start by deciding which side of private credit you need.
• What is venture debt and who qualifies for it?Venture debt is a loan made to a venture-backed company, usually alongside or after an equity round.
• What is mezzanine financing and when should I use it?Many sponsors look at mezzanine financing when senior debt does not cover the whole gap and they want to avoid selling more equity.
• Should I bootstrap or raise outside capital?Start by mapping what the business can fund today and what it needs to reach its next meaningful milestone.
• What is the easiest way to raise capital for a small business?Start with one group of investors who already understand your business or have a natural reason to learn about it.
• Can I raise capital without giving up equity?Start by defining the amount you need, what it will fund, and when the business needs it.
• What is the difference between debt and equity financing?Debt financing gives a business capital it must repay under agreed terms, equity financing gives investors an ownership interest.

Tools for this topic

• Data room checklist
• How much to raise calculator

Common questions